Q4 and FY 2024 Operating Update

Petra Diamonds Limited

(Petra or the Company)

Q4 and FY 2024 Operating Update

Richard Duffy, Chief Executive Officer of Petra, commented:

“At our recent investor day, we unveiled our plans to demonstrate Petra Diamonds’ enhanced resilience and compelling value proposition. We are focussed on delivering our target of US$30 million in sustainable annual cost savings together with a smoothed capital profile, to generate net free cash from the current financial year onwards. This will allow us to continue to deleverage and provide flexibility with regards to refinancing our 2026 2L Notes.

During FY 2024, carats sold increased by 36% compared to FY 2023, with revenue rising by 13%. This increase was driven by Williamson ramping up to steady-state operations and the planned benefit of the delayed sale of the final tender in FY 2023. Annual production was slightly below our revised guidance at 2.73 million carats.

Our net debt decreased by US$11 million to US$201 million at 30 June 2024, compared to US$212 million at 31 December 2023, reflecting our agility in exceeding the cost reduction, capital savings and deferral targets announced in November 2023.

Current diamond market weakness is expected to continue through to the end of the calendar year with some price volatility. We expect diamond prices to show modest recovery in the new year with market fundamentals providing pricing support in the medium and longer-term. We are looking forward to addressing the challenges ahead of us from a position of strength, with world class assets that have long term-potential, strong sustainability credentials and an ability to withstand market and capital cycles.”

Highlights vs Q3 FY 2024

LTIFR and LTIs improved to 0.13 and 2 respectively (Q3 FY 2024: 0.20 and 3 respectively)

Ore processed increased marginally to 3.0Mt from 2.9Mt with the ramp-up at Williamson increasing production by 0.1Mt and a steady quarter at the Cullinan and Finsch Mines

Improvements in grade recovery continued at Finsch given increasing contribution from 78-Level Phase II. Work to resolve the winder issues and the transition from continuous operations to a two-shift, five-day configuration has reduced carats recovered from Q3 FY 2024

Revenue, including revenue from profit share arrangements, amounted to US$113 million (Q3 FY 2024: US$66 million), with the increase due to the timing of receipts from Tender 5 carried over from the previous quarter

Support from South African Rand weakness continued throughout the period, with the Rand averaging ZAR18.71:US$1 (Q3 FY 2024: ZAR18.95:US$1)

Operational capital expenditure for Q4 FY 2024 totalled US$18 million, in-line with updated guidance announced following the decision to defer certain capital project expenditure

Amounts drawn under the ZAR1.75 billion (US$96 million) Revolving Credit Facility with Absa Bank remains unchanged, leaving an outstanding balance of ZAR450 million (US$25 million) at 30 June 2024, down from ZAR850 million (US$47 million) at 31 December 2023

Consolidated net debt decreased to US$201 million as at 30 June 2024 (31 March 2024: US$232 million) with US$5 million of 2026 2L Notes bought through an Open Market Repurchase programme

Operating Summary

2 Petra classifies “Exceptional Stones” as rough diamonds which sell for US$15 million or more each

3 Restated to exclude Koffiefontein which is classified as a discontinued operation

Group guidance for FY 2025 to 2029

Notes: Guidance for FY 2026 to 2029 is subject to the Board’s approval of future budgets

Real amounts stated in FY 2025 money terms using 6% SA CPI & 2.5% US CPI. US$ equivalent for SA operations converted at an exchange rate of USD1:ZAR18.36

Detailed mine-by-mine guidance for FY 2025 to 2029 can be found in the guidance section of our website: https://www.petradiamonds.com/investors/shareholder-centre/analysts/

INVESTOR WEBCASTS

Webcast presentation for institutional investors and analysts at 09:30am BST today

Petra’s CEO, Richard Duffy, and CFO designate, Johan Snyman, will host a live virtual presentation including Q&A for institutional investors and analysts at 09:30 BST today to discuss this operating update.

Link for live presentation via Teams: https://events.teams.microsoft.com/event/c44e6be5-431f-4e65-8ee3-37c3811ddf84@3c08cd12-de9b-4814-9ea3-392066758217

Link for recording (available later in the day):

Investor Meet Company webcast at 14.30pm BST today

Petra’s CEO, Richard Duffy, and CFO designate, Johan Snyman, will also present these results live on the Investor Meet Company platform, predominantly aimed at retail investors. To join: https://www.investormeetcompany.com/petra-diamonds-limited/register-investor

LTIFR: lost time injury frequency rate, calculated as the number of LTIs multiplied by 200,000 and divided by the number of hours worked

FY: financial year ending 30 June

CY: calendar year ending 31 December

Q: quarter of the financial year

ROM: run-of-mine (i.e. production from the primary orebody)

m: million

Mt: million tonnes

Mcts: million carats

period: the fourth quarter of FY 2024

Corporate and financial summary as at 30 June 2024

Note: The following exchange rates have been used for this announcement: average for FY 2024 US$1: ZAR18.71 (FY 2023: US$1: ZAR17.77); closing rate as at 30 June 2024 US$1: ZAR18.19 (31 March 2024: US$1: ZAR18.92; 31 December 2023: US$1: ZAR18.28 and 30 June 2023: US$1: ZAR18.83).

Notes:

The Group’s cash balances excluding Williamson comprise unrestricted balances of US$27 million, and restricted balances of US$20 million.

Recorded at the lower of cost and net realisable value.

The 2026 Loan Notes, originally issued following the capital restructuring (the “Restructuring”) completed during March 2021, have a carrying value of US$246 million which represents the outstanding principal amount of US$206 million (after the debt tender offers as announced in September and October 2022) plus US$47 million of accrued interest and is stated net of unamortised transaction costs capitalised of US$7 million. During quarter 4 of FY 2024 Petra purchased 2026 Loan Notes with a nominal value of US$5 million through an open market repurchase programme. The repurchased notes were cancelled.

Bank loans and borrowings represent the Group’s ZAR1.75 billion (US$96 million) revolving credit facility. As at 30 June 2024, a total of ZAR450 million (US$25 million) was drawn leaving a further balance of ZAR1.3 billion (US$72 million) available for drawdown.

Consolidated Net Debt is bank loans and borrowings plus loan notes, less cash and diamond debtors.

Mine-by-mine tables:

Cullinan Mine – South Africa

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