TIDMPDL 
 
14 September 2021                                                        LSE: PDL 
 
                            Petra Diamonds Limited 
                    ("Petra", "the Company" or "the Group") 
 
 Preliminary Results Announcement for the Year ended 30 June 2021 (unaudited) 
 
Petra Diamonds Limited announces its preliminary results (unaudited) for the 
year ended 30 June 2021 ("the Year" or "FY 2021"). 
 
 
Richard Duffy, Chief Executive, commented on the results: 
 
"FY 2021 was a watershed year for Petra. Besides the challenges of the COVID-19 
pandemic, we completed a capital restructuring which, together with the sale of 
a number of exceptional blue and white diamonds from the Cullinan mine, served 
to reduce consolidated net debt by around two thirds to US$228.2 million. We 
now have a more stable capital structure, considerably reduced debt obligations 
and greater liquidity. 
 
"The strong recovery in the diamond market towards the end of the financial 
year, that has continued into the current quarter, further bolstered our 
improved financial position. Record production at Cullinan, driven by Project 
2022 throughput initiatives, as well as the highest annual contribution to 
revenue from exceptional diamond sales, resulted in a 65% improvement in 
revenue to US$402.3 million and contributed to operational free cashflow of 
US$120.1 million for FY 2021.  These record recoveries have continued post Year 
end with the sale of the magnificent 39.34 carat blue diamond for US$40 
million, being the most valuable single diamond ever sold by Petra. The US$1 
million per carat realised for this stone is likely the highest per carat price 
for a rough diamond ever achieved. 
 
"Although Group production for the Year was negatively impacted by production 
challenges at both Finsch and Koffiefontein, we are confident that the post 
Year end re-engineering projects currently underway will lead to improved 
production and margins at both operations during FY 2022. 
 
"We enter FY 2022 with some momentum from a considerably strengthened balance 
sheet, ongoing optimisation of our asset base and a positive outlook for the 
diamond market." 
 
Key Financial Results1 
 
·    FY 2021 revenue up 65% to US$402.3 million (FY 2020: US$243.3 million), 
including US$62.0 million contribution from Exceptional Stones (FY 2020: 
US$14.9 million). 
 
·    Adjusted EBITDA up 101% to US$135.4 million (FY 2020: US$67.3 million); 
adjusted EBITDA margin of 34% (FY 2020: 28%). 
 
·    Operational free cashflow13 of US$120.1 million (FY 2020: operational cash 
outflow of US$12.3 million). 
 
·    Adjusted loss before tax decreased 88% to US$8.9 million (FY2020: US$74.0 
million). 
 
·    Adjusted net loss after tax of US$16.1 million (FY 2020: US$54.7 million). 
 
·    Non-cash impairment charge of US$17.7 million (FY 2020: US$50.5 million) 
 
·    Loss on discontinued operations of US$52.1 million (FY 2020: US$58.0 
million). 
 
·    Net profit after tax of US$196.6 million (FY 2020: net loss after tax: 
US$223.0 million), including a gain of US$213.3 million on the extinguishment 
of the Notes following the successful debt Restructuring. 
 
·    Consolidated net debt reduced to US$228.2 million at 30 June 2021 from 
US$693.2 million at 30 June 2020. 
 
·    Basic earnings per share from continuing operations: 6.67 US$ cents per 
share (FY 2020: loss of 15.26 US$ cents per share). 
 
·    The Board has decided to review its strategic options at Williamson and 
the asset has therefore been classified as an asset held for sale for financial 
reporting purposes. 
 
Operational and ESG Results 
 
·    Lost Time Injury Frequency Rate ("LTIFR") increased to 0.44 (FY 2020: 
0.29). Total injuries, including LTIs, in FY 2021 decreased to 42 (FY 2020: 
45). 
 
·    Production down 2% to 3.24 Mcts (FY 2020: 3.29 Mcts), with record 
production of 1.94 Mcts at Cullinan offset by lower production at Finsch and 
Koffiefontein. 
 
·    Absolute on-mine cash costs increased 3% to US$197.6 million (FY 2020: 
US$191.2 million), driven by inflation and a marginally stronger South African 
Rand. 
 
·    The Company's total carbon footprint decreased 16% in FY 2021, assisted by 
lower production levels as well as the positive impact of the Company's energy 
efficiency initiatives. 
 
·    Petra's commitment to environmental reporting affirmed with the attainment 
of an A- score for its climate change submission to CDP, placing the Company in 
the leadership category. 
 
·    Continued focus on diversity saw the percentage of women in the Company 
increase from 19% to 20% in FY 2021 and the percentage of women on the Board 
increased from 22% to 25%, with a further increase post Year end to 34%. 
 
Post Year End Updates 
 
·    The Company announced the sale of an exceptional 39.34ct blue diamond, 
recovered during April 2021, for US$40.18 million, as well as a 342.92 carat 
Type IIa white diamond and an 18.30 carat Type IIb blue diamond that were sold 
for a total of US$13.5 million; the Company has retained a 50% interest in the 
profit uplift of the polished proceeds of both diamonds, after costs. 
 
·    Successful labour negotiations concluded in September 2021, with the 
agreement of a new three-year wage agreement with NUM covering FY 2022 to FY 
2024, which should allow for further workforce stability over this timeframe. 
 
·    Re-engineering projects initiated in July 2021 at Finsch and Koffiefontein 
to comprehensively review and improve the mines' cost bases and enhance 
operating efficiencies and margins. 
 
·    Although the number of COVID cases have increased as a result of a third 
wave of infections in South Africa, there has been a limited impact on our 
production rate. Petra is carrying out vaccination drives at each of the South 
African mines in order to help protect our workforce. 
 
·    Discussions with the Government of Tanzania to reach agreement on various 
issues at the Williamson mine are ongoing, with an objective of these being 
concluded during FY 2022. 
 
Outlook 
 
·    FY 2022 production guidance of 3.3 to 3.6 Mcts (South African operations: 
3.1 to 3.4 Mcts and Williamson: 0.22 to 0.27 Mcts). 
 
·    FY 2022 capex guidance of US$78 million to US$92 million (South African 
operations: US$70 million to US$82 million and Williamson: US$8 million to 
US$10 million). 
 
·    Positive outlook for the market, with the severe supply contraction of CY 
2020 expected to continue in CY 2021, while consumer demand is expected to 
remain robust in the second half of CY 2021, with retailers anticipating 
continued strong consumer demand moving into the key festive retail period, 
underpinned by shortages in the polished market. 
 
1Unless stated otherwise, the financial results in this announcement are 
adjusted to exclude the assets and liabilities of Williamson, which has been 
reclassified as an asset held for sale as at 30 June 2021, and the operating 
results of Williamson have been reclassified as a discontinued operation for FY 
2020 and FY 2021. An appendix for production results has been included on page 
25 to show operational results prior to its reclassification, for reference 
only. 
 
SUMMARY OF RESULTS (unaudited) 
 
                                                                         Restated8 
 
                                                        Year ended 30  Year ended 30 
                                                          June 2021      June 2020 
                                                         ("FY 2021")    ("FY 2020") 
 
                                                         US$ million    US$ million 
 
Revenue                                                     402.3          243.3 
 
Adjusted mining and processing costs1                      (261.2)        (169.3) 
 
Other direct income                                          1.7            1.0 
 
Profit from mining activity2                                142.8           75.0 
 
Exploration expense                                           -            (0.5) 
 
Adjusted corporate overhead16                               (7.4)          (7.2) 
 
Adjusted EBITDA3                                            135.4           67.3 
 
Depreciation & Amortisation                                 (76.8)         (69.8) 
 
Share-based expense                                         (0.5)          (0.7) 
 
Net finance expense                                         (67.0)         (70.8) 
 
Adjusted loss before tax                                    (8.9)          (74.0) 
 
Tax (expense) / credit (excluding taxation credit /         (7.2)           19.3 
charge on impairment charge and unrealised foreign 
exchange gain / (loss))14 
 
Adjusted net loss after tax4                                (16.1)         (54.7) 
 
Impairment charge - operations and other receivables5       (17.7)         (50.5) 
 
Impairment of BEE loans receivable - expected credit         5.8           (10.9) 
loss release / (charge) 6 
 
Gain on extinguishment of Notes net of unamortised          213.3            - 
costs 
 
Profit on disposal of subsidiary7                            14.7            - 
 
Costs and fees relating to investigation and settlement     (12.7)           - 
of human rights abuse claims 
 
Net unrealised foreign exchange gain / (loss)                77.1          (82.1) 
 
Taxation (charge) / credit on unrealised foreign            (19.9)          22.2 
exchange gain / (loss)14 
 
Taxation credit on impairment charge                         4.2            11.0 
 
Profit / (loss) from continuing operations                  248.7         (165.0) 
 
Loss on discontinued operations, net of tax7                (52.1)         (58.0) 
 
Net profit / (loss) after tax                               196.6         (223.0) 
 
Earnings per share attributable to equity holders of 
the Company - 
US cents 
 
Basic profit / (loss) per share - from continuing and        5.22         (21.96) 
discontinued operations 
 
Basic profit / (loss) per share - from continuing            6.67         (15.26) 
operations 
 
Adjusted loss per share - from continuing operations8       (0.46)         (5.04) 
 
 
 
Cash at bank - (including restricted amounts)     US$m       163.8          67.6* 
 
Diamond debtors                                   US$m        38.3           4.8* 
 
Diamond inventories                              US$m /       45.1          84.1* 
                                                  Cts       560,699       1,357,584* 
 
US$336.7m loan notes (issued March 2021)15        US$m       327.3            - 
 
US$650 million loan notes9                        US$m         -            676.9 
 
Bank loans and borrowings10                       US$m       103.0           52.1 
 
BEE partner bank facilities11                     US$m         -             40.0 
 
Consolidated Net debt12                           US$m       228.2          693.2 
 
Bank facilities undrawn and available10           US$m        7.7             - 
 
*Including Williamson 
 
The following exchange rates have been used for this announcement: average for 
FY 2021 US$1:ZAR15.41 (FY 2020: US$1:ZAR15.68); closing rate as at 30 June 2021 
US$1:ZAR14.27 (30 June 2020: US$1:ZAR17.32). 
 
Results Webcasts - 9:30am and 4:00pm BST today 
 
Petra's Chief Executive Richard Duffy and Finance Director Jacques Breytenbach 
will host a results webcast at 9:30am BST on 14 September 2021. Participants 
can join the webcast by registering at: 
 
https://www.petradiamonds.com/go/prelim14sep2021-09h30. 
 
A recording of the webcast will be available later that day on Petra's website 
at: 
 
https://www.petradiamonds.com/investors/results-reports/ and on the link above. 
 
There will be a second webcast on 14 September 2021 for international investors 
at 4:00pm BST.  Participants can join the webcast by registering at: 
 
https://www.petradiamonds.com/go/prelim14sep2021-16h00 
 
Investor Meet Company Webcast - 2:00pm BST today 
 
Petra will also be hosting an investor presentation predominantly aimed at 
retail investors with Investor Meet Company at 2:00pm BST on 14 September 2021. 
Participants can join the webcast by registering at: https:// 
www.investormeetcompany.com/petra-diamonds-limited/register-investor 
 
Notes to Summary of Results Table: 
 
The Group uses several non-GAAP measures above and throughout this report to 
focus on actual trading activity by removing certain non-cash or non-recurring 
items. These measures include adjusted mining and processing costs, profit from 
mining activities, adjusted EBITDA, adjusted net profit after tax, adjusted 
earnings per share, US$ loan note and consolidated net debt for covenant 
measurement purposes. As these are non-GAAP measures, they should not be 
considered as replacements for IFRS measures. The Group's definition of these 
non-GAAP measures may not be comparable to other similarly titled measures 
reported by other companies. The Board believes that such alternative measures 
are useful as they exclude one-off items such as the impairment charges and 
non-cash items to provide a clearer understanding of the underlying trading 
performance of the Group. 
 
1.      Adjusted mining and processing costs are mining and processing costs 
stated before depreciation and share-based expense. 
 
2.      Profit from mining activities is revenue less adjusted mining and 
processing costs plus other direct income. 
 
3.      Adjusted EBITDA is stated before depreciation, amortisation of 
right-of-use asset, costs and fees relating to investigation and settlement of 
human rights abuse claims, share-based expense, net finance expense, tax 
expense, loss on discontinued operations, net of tax, impairment charges, 
expected credit loss release/ (charge), gain on extinguishment of Notes net of 
unamortised costs, profit on disposal of subsidiary and net unrealised foreign 
exchange gains and losses 
 
4.      Adjusted net profit/(loss) after tax is net profit/(loss) after tax 
stated before impairment charge, expected credit release (loss) provision, gain 
on extinguishment of Notes net of unamortised costs, profit on disposal net 
unrealised foreign exchange gains and losses, and excluding taxation (charge) 
credit on net unrealised foreign exchange gains and losses and excluding 
taxation credit on impairment charge. 
 
5.      Impairment charge of US$17.7 million (30 June 2020: US$50.5 million) 
was due to the Group's impairment review of its operations and other 
receivables. Refer to note 16 for further details. 
 
6.      Reversal of impairment of BEE loans receivable of US$5.8 million (30 
June 2020: US$10.9 million impairment charge) is due to the Group's expected 
credit loss assessment of its BEE loans receivable. Refer to note 13 for 
further details. 
 
7.      The profit on disposal of subsidiary of US$14.7 million includes the 
reclassification of foreign currency translation reserve, net of tax of Sekaka 
Diamonds (Pty) Ltd. 
 
The loss on discontinued operations reflect the results of the Williamson 
operation (net of tax), including impairment, of US$52.1 million (FY 2020 
results have been amended for comparability) as per the requirements of IFRS 5; 
refer to Note 17. 
 
8.      Adjusted EPS from continuing operations is stated before impairment 
charge, expected credit release (loss) provision, gain on extinguishment of 
Notes net of unamortised costs, profit on disposal of subsidiary, costs and 
fees relating to investigation and settlement of human rights abuse claims, net 
unrealised foreign exchange gains and losses, and excluding taxation (charge) 
credit on net unrealised foreign exchange gains and losses and excluding 
taxation credit on impairment charge. 
 
9.      The US$650 million loan note represents the gross capital of US$nil (30 
June 2020: US$650 million), including US$nil accrued interest (30 June 2020: 
US$26.9 million). These loan notes were settled in full following the debt 
restructuring completed during March 2021. Refer to detailed Debt Restructuring 
Note 8. 
 
10.    Bank loans and borrowings represent amounts drawn under the Group's 
refinanced South African bank facilities as part of the Restructuring and 
comprise the ZAR1.068 billion term loan (US$74.8 million), net of unamortised 
transaction costs capitalised of US$1.7 million, and ZAR402.1 million (US$28.2 
million) drawn (including accrued interest) under the ZAR509.6 million (US$35.7 
million) revolving credit facility. Under the revolving credit facility, 
ZAR109.6 million (US$7.7 million) remains undrawn and available. 
 
11.    BEE partner bank facilities represent the BEE guarantees of US$nil 
(ZARnil) (30 June 2020: US$40.0 million (ZAR693.6 million)). During FY 2021 and 
as part of the debt restructuring, the BEE partner bank facilities (which 
comprised the BEE guarantees) were settled by the Group through proceeds of the 
term loan under the Group's South African bank facilities. Refer to note 10 
above for further detail. 
 
12.    Consolidated Net Debt is bank loans and borrowings plus loan notes, less 
cash, less diamond debtors and includes the Black Economic Empowerment 
guarantees of ZARnil (US$nil) as at 30 June 2021 (ca. US$40.0 million (ZAR693.6 
million) as at 30 June 2020). 
 
13.    Operational free cashflow is defined as cash generated from operations 
less acquisition of property, plant and equipment. 
 
14.    Tax expense / credit is the tax (expense) / credit for the Year 
excluding taxation credit / charge on impairment charge and unrealised foreign 
exchange gain / (loss) generated during the Year; such exclusion more 
accurately reflects resultant Adjusted net profit /(loss). 
 
15.    The US$336.7 million loan notes have a carrying value of US$ 327.3 
million which represents gross capital of US$336.7 million (30 June 2020: 
US$nil), plus US$11.1 million accrued interest (30 June 2020: US$nil) net of 
unamortised transaction costs capitalised of US$20.5 million. Refer to note 10 
for further detail. 
 
16.    Adjusted corporate overheads is corporate overheads net of depreciation, 
amortisation of right-of-use assets, share based payment expense and costs and 
fees relating to investigation and settlement of human rights abuse claims. 
 
For further information, please contact: 
 
Petra Diamonds, London                                         Telephone: +44 
20 7494 8203 
 
Cathy Malins 
 
Des Kilalea 
 
Marianna Bowes 
investorrelations@petradiamonds.com 
 
About Petra Diamonds Limited 
 
Petra Diamonds is a leading independent diamond mining group and a consistent 
supplier of gem quality rough diamonds to the international market. The Company 
has a diversified portfolio incorporating interests in three underground 
producing mines in South Africa (Finsch, Cullinan and Koffiefontein) and one 
open pit mine in Tanzania (Williamson). 
 
Petra's strategy is to focus on value rather than volume production by 
optimising recoveries from its high-quality asset base in order to maximise 
their efficiency and profitability. The Group has a significant resource base 
of ca. 230 million carats, which supports the potential for long-life 
operations. 
 
Petra strives to conduct all operations according to the highest ethical 
standards and will only operate in countries which are members of the Kimberley 
Process. The Company aims to generate tangible value for each of its 
stakeholders, thereby contributing to the socio-economic development of its 
host countries and supporting long-term sustainable operations to the benefit 
of its employees, partners and communities. 
 
Petra is quoted with a premium listing on the Main Market of the London Stock 
Exchange under the ticker 'PDL'. The Company's US$336.7 million notes due in 
2026 are listed on the Irish Stock Exchange and admitted to trading on the 
Global Exchange Market. For more information, visit www.petradiamonds.com. 
 
CEO'S REVIEW 
 
A resilient business and market 
 
While FY 2021 continued to present a number of challenges, both internal and 
external, real progress was made in terms of stabilising our balance sheet, 
further to the completion of the recapitalisation of the Group (the 
"Restructuring"), and continuing to optimise production at all our assets, 
particularly the Cullinan mine, set against the backdrop of an improving 
diamond market. 
 
Our most important performance indicator is safety: while the number of 
injuries experienced during the Year reduced 7% from 45 to 42, it was 
disappointing that the number of lost-time injuries increased from 19 to 25, 
which led the Group LTIFR to increase from 0.29 in FY 2020 to 0.44 in FY 2021. 
An evaluation of the incidents has determined that the majority of these were 
of low severity and behavioural related, and our approach is therefore to use 
initiatives to drive a change in people's mindsets and to foster greater 
awareness towards achieving an accident-free workplace. 
 
The impact of COVID-19 on individuals and the economy has increased the levels 
of stress and impacted on the emotional wellbeing of all our employees. We 
believe this has contributed to the deterioration in safety performance. This 
is borne out by an increase in accidents and fatalities across the South 
African mining sector as a whole since the outbreak of the COVID-19 pandemic, 
as measured by the Minerals Council South Africa. Addressing this issue 
therefore requires a holistic approach, including training, mentorship, 
communication and wellbeing initiatives. 
 
The COVID-19 pandemic remains an ongoing business challenge. In South Africa, 
we are currently experiencing a third wave of infections and the disruption to 
operations is mainly around the necessary quarantine of confirmed or suspected 
cases amongst our workforce. However, we have the systems and processes in 
place to manage this without materially impacting production. Our focus now is 
on assisting the Government with its vaccination drive and we have vaccination 
stations and campaigns to encourage their uptake available at, or near to, each 
of our operations. While the vast majority of those who contract the virus only 
have mild to moderate symptoms, we have very sadly lost 14 employees to the 
disease as at the date of these results. Our heartfelt condolences go to the 
loved ones and colleagues of the deceased. 
 
In terms of production, output for the Year decreased 2% to 3,240,312 carats 
(FY 2020: 3,291,046 carats), notwithstanding record annual production from 
Cullinan of 1.94 Mcts. As previously announced, production at Finsch was 
impacted by unexpected levels of waste ingress during Q2 FY 2021, with 
subsequent mitigating measures reducing throughput during the second half of 
the Year. In addition, production at both Finsch and Koffiefontein was impacted 
by the high level of rainfall during the third quarter. Cullinan's record 4.61 
Mt ROM production (FY 2020: 3.97 Mt) was partially offset by these factors, 
resulting in the Group's ROM tonnages for the Year increasing by 3% to 7.7 Mt 
(FY 2020: 7.5 Mt). 
 
Cullinan performed very well for the Year, benefitting from the Project 2022 
business improvement throughput initiatives. ROM tonnes increased 16% to 4.61 
Mt (FY 2020: 3.97 Mt), and spare capacity in the plant was utilised with a 73% 
increase in tailings tonnes to 0.45 Mt (FY 2020: 0.26 Mt), leading to an 
overall record tonnes treated at the operation under Petra stewardship of 5.06 
Mt (FY 2020: 4.23 Mt). 
 
The mine also affirmed its place as a producer of world-class diamonds, with 
the recovery of a number of spectacular stones, namely: 
 
·    September 2020: The Letlapa Tala collection of five high quality blue 
diamonds totalling 85.6ct were recovered all in the space of one week's 
production at the mine. The collection was sold as a suite of stones to a 
partnership between De Beers and Diacore for US$40.36 million in November 2020. 
 
·    January 2021: A 299ct high quality white diamond was recovered and 
subsequently sold to Stargems DMCC for US$12.18 million in March 2021. 
 
·    February 2021: A 11.82ct high quality blue diamond was recovered and 
subsequently sold for US$9.53 million in April 2021. 
 
·    April 2021: An exceptional 39.34ct blue diamond was recovered and sold 
post Year end to a partnership between De Beers and Diacore for US$40.18 
million in July 2021, representing a remarkable US$1.0 million per carat. This 
was the most valuable diamond sold in Petra's history and is believed to be the 
most valuable rough stone per carat ever sold (though since not all rough 
diamond sales are publicly disclosed, this cannot be established with 
certainty). 
 
The sale of the Letlapa Tala collection, the 299ct white diamond and the 
11.82ct blue diamond contributed US$62.0 million in 'exceptional diamond sales' 
to revenue for the Year (FY 2020: US$14.9 million), being the highest 
contribution in Petra's history. Post Year end, Petra has also recovered and 
sold two further special diamonds from the Cullinan mine, being a 342.92ct 
white stone and an 18.30ct blue stone, into a partnership with Stargems (Pty) 
Ltd. Petra received an upfront payment of US$10.0 million for the white stone 
and US$3.5 million for the blue stone, as well as retaining a 50% interest in 
the profit uplift of the polished proceeds of both diamonds, after costs. 
 
The higher revenue for the Year led to Adjusted EBITDA being up 101% to 
US$135.4 million (FY 2020: US$67.3 million) and Operational free cashflow of 
US$120.1 million (FY 2020: operational cash outflow of US$12.3 million). 
However, overall profitability for the Year was impacted by Depreciation of 
US$75.9 million (FY 2020: US$69.3 million) and Net finance expenses of US$67.0 
million (FY 2020: US$70.8 million) and the Company therefore recorded an 
Adjusted loss after tax of US$16.1 million (FY 2020: US$54.7 million). 
 
Outlook for FY 2022 
 
Looking ahead to FY 2022, we are guiding production to increase to between 3.3 
and 3.6 Mcts, with the South African operations estimated to contribute 3.1 to 
3.4 Mcts and Williamson estimated to contribute 0.22 to 0.27 Mcts. 
 
At Williamson, preparations to resume production in H1 FY 2022 continue with 
the redeployment of employees and contractors, while receiving relevant 
refresher and safety training, and the recommissioning of plant and equipment. 
The Board has decided to review its strategic options at Williamson and the 
asset has therefore been classified as an asset held for sale for financial 
reporting purposes. 
 
Recapitalisation of the business 
 
In March 2021, Petra completed the recapitalisation of the Group, thanks to the 
continued support of its bondholders, shareholders and its South African Lender 
Group. The completion of the Restructuring, along with the aforementioned sale 
of Exceptional Stones during the Year, helped the Group's Consolidated net 
debt, excluding Williamson, reduce by nearly two thirds to US$228.2 million at 
30 June 2021, from US$700.3 million at 31 December 2020. The key features of 
the Restructuring are set out on page 16 of this announcement. 
 
The Restructuring has provided Petra with a more stable and sustainable capital 
structure, significantly reduced financial burdens and greater liquidity, 
leaving us in a stronger position to focus on optimising the value of our 
diversified asset base and to deliver growth for all our stakeholders. 
 
ESG performance 
 
The Company remained highly active across all the different areas of ESG, which 
are integrated into our strategy and how we manage the business. 
 
In terms of environmental performance, our team continued to focus on the 
efficient use of water and energy during the Year, as well as responsible waste 
management across the operations. Our total carbon footprint reduced 16% to 
405,807 tCO2-e (FY 2020: 483,431 tCO2-e), mainly due to the lower production 
with Williamson being on care and maintenance, and associated reduction in 
energy consumption for the Year, positively impacted by our focus on energy 
efficiency. Our carbon emitted per carat decreased 7% to 0.125 tCO2-e/ct (FY 
2020: 0.134 tCO2-e/ct) due to the combined effect of the overall decrease in 
carats produced and associated lower energy use for the Year. 
 
Significant progress was made in terms of the Group's environmental strategy in 
FY 2021 with the Board approval of the Group's Climate Change Adaptation 
Strategy, which will assist Petra in staying on top of rapidly changing 
legislation and in meeting stakeholder expectations. The Company also improved 
its CDP climate change reporting to the A- category, placing Petra in the 
leadership category and demonstrating our strong commitment to this area. 
 
Petra continued to focus on the development of a suitably diverse workforce. 
The overall gender diversity of the Group increased to 20% in FY 2021 (FY 2020: 
19%), which remains above that of the industry average in South Africa, which 
ranges from 12%-17% depending on the commodity. We were also pleased to improve 
gender diversity at the higher levels of the business, with an increase in 
female representation at Board, senior management and management level, and our 
employee development programmes once again focused on the advancement of women 
and historically disadvantaged South Africans ("HDSAs"). 
 
Our community programmes remained very active and the Petra Hardship Fund 
continued to supply aid to address some of the most urgent needs of our local 
communities in South Africa. We also completed a number of community projects 
during the Year, including the refurbishment of water pump stations and the 
completion of electrification of households and informal dwellings in 
Kgatelopele, near the Finsch mine. A major drive for improved stakeholder 
relations also saw the number of engagements recorded by the Company increase 
to 658, with the majority of the increase relating to training sessions for 
small, medium and micro enterprises, in order to drive enterprise development 
in our local communities. 
 
More detail on our ESG performance for the Year will be reported in our 2021 
Annual and Sustainability Reports, which are due to be published on 12 October 
2021. 
 
Addressing the human rights allegations at Williamson 
 
In May 2021, Petra announced the findings of the its independent Board 
Sub-Committee in relation to alleged breaches of human rights at the Williamson 
mine in Tanzania raised by the UK law firm, Leigh Day and the independent NGO, 
Rights and Accountability In Development ("RAID").  The mine is operated by 
Williamson Diamonds Limited ("WDL"), which is 25% owned by the Government of 
Tanzania and 75% owned by Petra. Petra acquired its majority interest in WDL in 
2009. 
 
Based on the conclusions of the independent Board Sub-Committee, the Company 
acknowledged that past incidents have taken place that regrettably resulted in 
the loss of life, injury and the mistreatment of illegal diggers, within the 
WDL Special Mining Licence area ("SML"). The incidents in question involved 
WDL's third-party security provider Zenith Security as well as the Tanzanian 
Police Force ("TPF"). During the investigation, no evidence emerged that WDL 
personnel were directly involved in these actions. 
 
The Company took immediate precautionary measures to address the concerns 
raised, ahead of the findings of the investigation and in order to mitigate the 
risks of future incidents, including the appointment of a new third party 
security contractor, the training of all security personnel and internal 
management at WDL on human rights and their obligations in terms of the UN's 
Voluntary Principles on Security and Human Rights and the launch of a Community 
Grievance Mechanism. 
 
Further to the findings of the independent Board Sub-Committee, additional 
measures were put in place to address issues identified, including the revision 
of reporting structures to enable the more timely, accurate and transparent 
reporting of all incursions and incidents, the overhaul of stakeholder 
engagement at the mine, as well as ongoing work Group-wide, and the 
establishment of an independent Tier 2 Operational Grievance Mechanism, which 
aims to investigate and resolve complaints following the application of local 
legal requirements, including the provision of free and independent advice from 
local lawyers. 
 
Having already established the Operational Grievance Mechanism for complaints 
and grievances related to operational impacts, the Company has continued with 
the process of the design and implementation of a non-judicial, Independent 
Grievance Mechanism ("IGM") to address allegations of severe human rights 
impacts. A series of engagements with Government Ministries and Agencies, Civil 
Society and NGOs were conducted in Dodoma and Dar es Salaam, seeking feedback 
and support on the proposed design of the IGM. The company has specialist 
external support from Synergy Global Consulting ("Synergy") in the development 
of this process. Synergy is a specialist international consultancy with over 
twenty years' experience working with companies, governments and 
community-based organisations. 
 
Further detail on all the measures taken by Petra and WDL to address the 
findings are set out in the Company's announcement of 12 May 2021 'Findings of 
the Independent Board Sub Committee' which is available to view along with all 
other related announcements here: https://www.petradiamonds.com/our-operations/ 
our-mines/williamson/allegations-of-human-rights-abuses-at-the-williamson-mine/ 
. 
 
Petra also announced on 12 May 2021 that it had reached a settlement, on a no 
admission of liability basis, in relation to claims brought in London by Leigh 
Day, on behalf of the anonymous claimants, in relation to alleged breaches of 
human rights, associated with third-party security operations, within the SML. 
 
The agreed total settlement figure announced in May 2021 was £4.3 million 
(US$6.1 million), which includes the sum to be distributed to the claimants by 
Leigh Day, a contribution to the claimants' legal expenses and significant 
funds, which Petra has committed to invest in programmes dedicated to providing 
long-term sustainable support to the communities living around the mine. The 
Company has also incurred and provided for additional total costs of US$6.6 
million related to this matter in its FY 2021 accounts, the majority of which 
relate to legal, consultant, investigation and expert fees. 
 
During the period from 1 July to the end of August 2021, there were a total of 
89 incidents of illegal incursions onto the Williamson mine lease area, 
resulting in two security officials (one belonging to the third party security 
provider and one belonging to the TPF) suffering minor injuries, and in four 
arrests being made. We believe the contracted security teams and the TPF acted 
in accordance with the Voluntary Principles on Security and Human Rights. WDL 
is continuing to engage extensively with local stakeholders, including with 
surrounding village leaders and community forums, as well as with local and 
regional Government and police officials, to get their support in order to 
reduce these incursions. 
 
As previously noted, the Board has decided to review its strategic options at 
Williamson. However, this does not impact the Company's commitment to the 
community programmes, IGM and other actions and initiatives detailed in its 12 
May 2021 announcement referenced above. 
 
A resilient diamond market 
 
COVID-19 continued to have a significant impact on the diamond market in FY 
2021, with related regulations and other measures to control the spread of the 
virus continuing to impose restrictions, particularly around the movement of 
people and international travel. 
 
Petra maintained its flexible sales approach during the Year in order to 
maximise client attendance at its sales. This meant that we continued to hold 
rough diamond tenders for the South African goods in Antwerp (having fulfilled 
our regulatory obligation to offer a portion of goods for sale to the State 
Diamond Trader and local beneficiation groups in South Africa), rather than in 
Johannesburg, where travel restrictions have severely limited participation by 
international diamond buyers. We will continue to review this approach and 
reinstate sales in South Africa when conditions are right. 
 
Despite the ongoing challenges around COVID-19, overall the market has remained 
remarkably resilient, which we attribute to a number of factors: 
 
·    control discipline by the majors (De Beers and ALROSA), both via 
production cuts and restriction of supply to the midstream during periods of 
lower demand; 
 
·    the significant contraction of production supply in 2021, including the 
winding down of the Argyle mine, has served to lower inventories in the 
pipeline generally and restore a better balance between supply and demand; 
 
·    capacity returned to the midstream manufacturing segment in India; and 
 
·    strong consumer demand was experienced in the key retail markets, notably 
the US and China, leading to shortages in certain polished goods; commentators 
note that for some there is increased consumer disposable income due to lack of 
spend on competing product categories, such as holidays and experiences, and 
that natural diamonds remain highly desirable as a way to forge deeper human 
connections and to celebrate our most important life events. 
 
In 2020, the global diamond market experienced one of the most severe 
contractions in supply on record, falling 22% by volume to 107.1 Mcts (2019: 
138.2 Mcts). Material reductions in supply came from Australia (due to the 
closure of the Argyle mine), Russia, Botswana, Canada, the Democratic Republic 
of Congo and Namibia, due to a combination of production being slowed due to 
COVID-19, pending exhaustion of resources, mine closures, operations 
transitioning from open pit to underground and falling alluvial output. 
Increased volume of output was recorded in South Africa and Zimbabwe. 
 
For CY 2021, various sources forecast that rough supply will increase as mines 
come back into production, though the increase will be ameliorated by the 
closure of Argyle which still contributed 11 Mcts to global output in 2020. 
Bain & Co's "Optimistic" scenario projects that mines which continue to operate 
will reach pre-pandemic production levels by 2021-2022 and that global 
inventories will gradually sell out in a year.  Longer term, there are forecast 
to be few material additions to production over the next decade, with rough 
diamond supply forecast to remain "almost flat" at 2021 levels over the next 10 
years, according to Bain & Co, with few new projects coming on line. 
 
In terms of demand, Petra's participation in the Natural Diamond Council 
("NDC") remains an important strategy in terms of helping to positively impact 
the long-term fundamentals for our market. The NDC aims to ensure that natural 
diamonds inspire and excite today's consumer and it has secured rising 
Hollywood actor Ana de Armas as its global market ambassador. A new global 
marketing campaign starring Ms de Armas launched in September 2021 to support 
the market in advance of the key festive retail season and can be viewed at 
 
https://www.youtube.com/watch?v=ZAXKavG2vOE. 
 
Petra Sales and Prices 
 
FY 2021 revenue increased 65% to US$402.3 million (FY 2020: US$243.3 million) 
driven by sales from Exceptional Stones contributing US$62.0 million during the 
Year (FY 2020: US$14.9 million); the highest annual contribution to revenues 
from the sale of Exceptional Stones. On a like for like basis, realised diamond 
prices in Q4 FY 2021 increased ca. 5.7% from those achieved in Q3 FY 2021. 
 
Despite lower production for the Year, the amount of diamonds sold increased 
51% to 3,930,136 carats (FY 2020: 2,598,252 carats) due to the improvement in 
market conditions and the easing of certain COVID-19 related restrictions which 
allowed for a higher volume of sales to take place, including the release of 
inventory held over from the prior year. 
 
The Company recovered a number of Exceptional Stones from the Cullinan mine in 
FY 2021 and to date in FY 2022, as set out already on pages 6 to 7 of this 
announcement. These prices are included in the averages reported for Cullinan 
in the table below. 
 
Prices on a like-for-like basis increased ca. 9% compared to prices achieved in 
FY 2020 and closed the Year at levels above the prices achieved before the 
COVID-19 pandemic outbreak. 
 
Diamond prices achieved per operation 
 
                                         FY 2021                  FY 20202 
                                         US$/ct                    US$/ct 
 
Cullinan                                  1111                       981 
 
Finsch                                     77                        75 
 
Koffiefontein                              419                       387 
 
Notes: 
 
1.     Prices include Exceptional Stones. Prices excluding Exceptional Stones 
US$83/ct (FY 2020: US$86/ct). 
 
2.     Prices achieved in FY 2020 and FY 2021 do not reflect true run-of-mine 
averages as the Company had to withhold certain mostly lower value goods for 
sale in Q4 FY 2020 due to the depressed pricing environment; these goods were 
sold shortly after Year end, which negatively impacted unit prices in FY 2021, 
further exacerbated by the sale of other low value stock during June 2021. 
 
FINANCIAL REVIEW 
 
Revenue 
 
FY 2021 revenue increased 65% to US$402.3million (FY 2020: US$243.3 million) 
driven by sales from Exceptional Stones contributing US$62.0 million during the 
Year (FY 2020: US$14.9 million); the highest annual contribution to revenue 
from the sale of Exceptional Stones in Petra's history. Diamonds sold for the 
Year increased 51% to 3,930,136 carats (FY 2020: 2,598,252 carats), excluding 
Williamson, while rough diamond prices realised by Petra increased ca. 9% in FY 
2021 on a like for like basis. 
 
Mining and processing costs 
 
The mining and processing costs for the Year are comprised of on-mine cash 
costs as well as other operational expenses. A breakdown of the total mining 
and processing costs for the Year is set out below. 
 
          On-mine   Diamond     Diamond      Group    Adjusted Depreciation3 Total mining 
             cash royalties   inventory technical,  mining and          US$m          and 
           costs1      US$m         and    support  processing                 processing 
             US$m             stockpile        and       costs               costs (IFRS) 
                               movement  marketing        US$m                       US$m 
                                   US$m     costs2 
                                              US$m 
 
FY 2021     197.6       2.9        39.1       21.7       261.2          76.0        337.2 
 
FY 2020     191.2       2.6      (42.6)       18.1       169.3          68.9        238.2 
 
Notes: 
 
1.     Includes all direct cash operating expenditure at operational level, 
i.e. labour, contractors, consumables, utilities and on-mine overheads. 
 
2.     Certain technical, support and marketing activities are conducted on a 
centralised basis. 
 
3.     Includes amortisation of right-of-use assets under IFRS 16 of US$0.6 
million (FY 2020: US$0.2 million) and excludes exploration and corporate/ 
administration. 
 
Absolute on-mine cash costs in FY 2021 increased 3.3%, compared to FY 2020, due 
to: 
 
·    the effect of translating ZAR denominated costs at the South African 
operations at a stronger ZAR/USD exchange rate (1.7% increase); 
 
·    inflationary increases, including the impact of electricity and labour 
costs (6.0% increase); 
 
offset by: 
 
·    the variable cost impact of changing production volumes across the South 
African operations (0.8% decrease); and 
 
·    net savings, including Project 2022 initiatives (3.6% decrease). 
 
Diamond inventory and stockpile movements reflect the release of inventories 
during FY 2021 resulting in a charge of US$39.1 million, compared to a credit 
of US$42.6 million in FY 2020 due to increased levels of stockholding driven by 
an inability to hold tenders due to COVID-19. 
 
Profit from mining activities 
 
Profit from mining activities increased 90% to US$142.8 million (FY 2020: 
US$75.0 million), mainly due to increased volumes sold, improved diamond 
pricing and the contributions from Exceptional Stones. 
 
Adjusted corporate overhead - general and administration 
 
Corporate overhead (before costs and fees relating to investigation and 
settlement of human rights claims, depreciation and share-based payments) 
increased marginally to US$7.4 million for the Year (FY 2020: US$7.2 million), 
mainly attributable to the ZAR strengthening against the USD in addition to 
cost curtailment measures introduced during the Year. 
 
During the Year, the Group received payments from the South African government 
under the temporary employee relief scheme ("TERS") of US$3.5 million (FY 2020: 
US$nil). Of the US$3.5 million TERS payment received, US$0.3 million was 
attributable to corporate overheads expenditure and US$3.2 million was 
attributable to Mining and processing costs. 
 
Adjusted EBITDA 
 
Adjusted EBITDA, being profit from mining activities less exploration and 
corporate overhead, increased 101% to US$135.4 million (FY 2020: US$67.3 
million), representing an adjusted EBITDA margin of 34% (FY 2020: 28%), 
reflecting better overall pricing, including proceeds from Exceptional Stones. 
 
Depreciation 
 
Depreciation for the Year increased to US$75.9 million (FY 2020: US$69.3 
million), mainly due to the strengthening of the ZAR against the USD and 
increased throughput at Cullinan, partially offset by reduced production at 
Finsch and Koffiefontein. 
 
Impairment charge 
 
As a result of the impairment reviews carried out at Cullinan, Finsch and 
Koffiefontein, and the Group's other receivables during the Year, the Board 
recognised an overall impairment charge of US$17.7 million (FY 2020: US$50.5 
million). Further details are provided in note 16. 
 
Asset level impairments at Finsch and Koffiefontein amount to US$17.3 million 
(FY 2020: US$50.9 million at Cullinan, Finsh and Koffiefontein) (representing 
some 2.4% of the Group's carrying value of property, plant and equipment of 
US$711.8 million (FY 2020: US$742.7 million) pre-impairment). There were no 
reversals of prior year impairments for Cullinan. 
 
Impairment of BEE loans receivable - expected credit loss provision 
 
The Group has applied the expected credit loss impairment model to its BEE 
loans receivable. In determining the extent to which expected credit losses may 
apply, the Group assessed the future free cashflows to be generated by the 
mining operations, based on the current LOM plans and the conclusion during the 
Year of an offset agreement with the BEE partners. Based on the assessment, the 
Group's free cashflows generated indicated a net credit loss reversal totalling 
US$5.8 million (30 June 2020: US$10.9 million expected credit loss provision), 
comprising of US$6.1 million provision reversal in respect of Cullinan and 
Finsch and an additional US$0.3 million expected credit loss provision in 
respect of Koffiefontein (30 June 2020: US$10.9 million provision comprising 
US$6.1 million in respect of Cullinan and Finsch, and US$4.8 million in respect 
of Koffiefontein) (refer to note 13 for further detail). 
 
Net financial income / expense 
 
Net financial income of US$223.4 million (FY 2020: US$152.9 million expense) 
comprises: 
 
·    net gain on extinguishment of the Notes of US$213.3 million (FY2020: 
US$nil) comprising a gain of US$221.0 million attributable to the debt for 
equity conversion and a loss of US$7.7 million on the substantial modification 
of the Notes; 
 
·    net unrealised foreign exchange gains of US$77.1 million (FY 2020: US$82.1 
million losses), driven by significant volatility in the Rand closing the Year 
at US$1:ZAR14.27 compared to US$1:ZAR17.32 at 30 June 2020, and representing 
(i) the unrealised foreign exchange gains on the foreign currency retranslation 
of cross border loans considered to be repayable in the foreseeable future, and 
(ii) unrealised losses on forward exchange contracts (refer to note 6 for 
further detail); and 
 
·    interest received on bank deposits of US$0.7 million (FY 2020: US$1.2 
million); 
 
offset by: 
 
·    the acceleration of unamortised finance costs attributable to the Notes of 
US$2.7 million (FY2020: US$nil); 
 
·    interest expense on the Group's debt and working capital facilities of 
US$51.5 million (FY 2020: US$52.4 million); 
 
·    net interest payable on the BEE Partner loans and amortisation of lease 
liabilities in accordance with IFRS 16 of US$3.1 million (FY 2020: US$6.7 
million); 
 
·    a charge for the unwinding of the present value adjustment for Group 
rehabilitation costs of US$4.3 million (FY 2020: US$4.6 million); and 
 
·    net realised foreign exchange losses on settlement of forward exchange 
contracts of US$6.1 million (FY 2020: US$8.3 million). 
 
Tax credit/charge 
 
The tax charge of US$23.0 million (FY 2020: US$52.5 million credit; reflecting 
principally the utilisation of certain capital allowances and the impact of the 
deferred taxation on the impairment charge, predominantly at Cullinan and 
Finsch, which reduced existing deferred tax liabilities) comprises deferred tax 
charges of US$19.9 million relating to utilisation of tax losses as a result of 
unrealised foreign exchange gains at Cullinan during the Year and US$2.7 
million in respect of other capital allowances, with an income tax charge of 
US$0.3 for the Year (FY 2020: US$0.6 million). 
 
The Group's current Year effective tax rate of 8.9% (FY 2020: 24.1%) is lower 
than the South African tax rate of 28% (the Group's primary tax paying 
jurisdiction) due to the recognition of the gain on extinguishment of the Notes 
for which no tax consequences are recognised. During the Year, there was a 
reversal of deductible temporary differences relating to the current Year 
impairments of property, plant and equipment, reversal of prior year tax losses 
recognised at Finsch and Cullinan and other reversing deductible temporary 
differences. There were no taxation adjustments arising from items of other 
comprehensive income and expense. 
 
Profit on disposal Sekaka Diamonds (Pty) Ltd ("Sekaka") 
 
The profit on disposal of subsidiary of US$14.7 million relates to the Group's 
disposal during the Year of its exploration operations in Botswana via the 
disposal of interests in Sekaka, and is made up of a US$0.3 million disposal 
consideration, net profit of US$1.3 million for the Period 1 July 2020 to the 
30 November 2020 disposal date, and the recycling of the foreign currency 
translation reserve of US$13.3 million, offset by a net asset disposal amount 
of US$0.2 million. Refer to Note 17 for the detailed breakdown. 
 
Loss on discontinued operations - Williamson 
 
The Board has decided to review its strategic options at Williamson and the 
asset has therefore been classified as an asset held for sale. As a result of 
the strategic review, the loss on discontinued operations of US$52.1 million 
relates to the Board's decision to reclassify Williamson mine as a discontinued 
operation in line with the criteria under IFRS 5 in meeting the definition of a 
disposal group and a discontinued operation for financial reporting purposes. 
 
In terms of the IFRS requirements to measure the assets of a disposal group at 
the lower of carrying amount and fair value less costs to sell, the 
determination of the fair value is complex and subject to considerable 
judgment.  Based on management's best estimate of the fair value at the 
reporting date, the following amounts have been recognised as a result of that 
reclassification: 
 
·    an impairment charge of US$21.4 million in respect of property, plant and 
equipment; 
 
·    a US$11.2 million charge attributable to Williamson's net loss for the 
Year. For comparative purposes, the prior period results for Williamson have 
been restated, which show a net loss of US$58.0 million (inclusive of an 
impairment charge of property, plant and equipment and certain receivables of 
US$34.6 million and US$6.8 million respectively); and 
 
·    a US$19.5 million provision for unsettled and disputed tax claims arising 
from the ordinary course of business. 
 
Refer to note 17 for further detail. 
 
Group loss/profit 
 
The Group's net profit after tax is US$196.6 million (FY 2020 net loss: 
US$223.0 million). 
 
Earnings per share 
 
Basic profit per share from continuing operations of 6.67 US$ cents was 
recorded (FY 2020: 15.26 US$ cents loss per share). 
 
Adjusted loss per share from continuing operations (adjusted for impairment 
charge,  expected credit release (loss) provision, gain on extinguishment of 
Notes net of unamortised costs, profit on disposal of subsidiary, costs and 
fees relating to investigation and settlement of human rights  claims, net 
unrealised foreign exchange gains and losses, and excluding taxation (charge) 
credit on net unrealised foreign exchange gains and losses and excluding 
taxation credit on impairment charge) of 0.46 US$ cents was recorded (FY 2020: 
5.04 US$ cents loss (adjusted for impairment charges, taxation credit on 
impairment charge, net unrealised foreign exchange gains and losses)). 
 
Operational free cashflow 
 
During the Year, operational free cashflow of US$120.1 million (FY 2020: 
US$12.3 million outflow) reflects the impact of stronger diamond prices, the 
contribution of Exceptional Stones and lower mining and processing costs 
derived from the optimisation of production and cost efficiencies from Project 
2022. This positive cashflow was offset by: 
 
·    US$12.1 million (FY 2020: US$33.3 million) cash finance expenses net of 
finance income and realised foreign exchange gains/(losses); 
 
·    US$7.0 million (FY 2020: US$14.1 million) advances to BEE Partners, 
largely related to servicing of BEE bank debt prior to the Restructure, with 
the advances recoverable against future BEE Partner distributions; and 
 
·    Restructuring fees settled during the Year of US$29.9 million (FY 2020: 
US$3.8 million net advances paid to advisors). 
 
Cash and diamond debtors 
 
As at 30 June 2021 the Company had cash at bank of US$163.8 million (30 June 
2020: US$67.6 million). Of these cash balances, US$147.7 million was held as 
unrestricted cash (30 June 2020: US$53.6 million), US$15.3 million was held by 
Petra's reinsurers as security deposits on the Group's cell captive insurance 
structure (with regards to the Group's environmental guarantees) (30 June 2020: 
US$13.3 million) and US$0.8 million was held by Petra's bankers as security for 
other environmental rehabilitation bonds lodged with the Department of Mineral 
Resources and Energy in South Africa (30 June 2020: US$0.7 million). 
 
Diamond debtors at 30 June 2021 were US$38.3 million (30 June 2020: US$4.8 
million), with the June 2021 tender closing at Year-end, and debtors settling 
shortly thereafter. Both Diamond Debtors and Diamond Inventory for FY 2020 were 
significantly impacted by the inability to host tenders during Q4 FY 2020 
following the initial COVID-19 outbreak. 
 
Diamond inventory 
 
Diamond inventory at 30 June 2021 decreased to US$45.1 million (30 June 2020: 
US$84.1m) reflecting the release of inventory during the Year. 
 
Loans and borrowings 
 
The Group had loans and borrowings (measured under IFRS) at Year end of 
US$430.3 million (30 June 2020: US$769.0 million), comprised of the US$327.3 
million Notes (includes US$11.3 million accrued interest and unamortised 
transaction costs of US$20.7 million) (30 June 2020: US$676.9 million), bank 
loans and borrowings of US$103.0 million (includes interest of US$0.1 million 
and unamortised transaction costs of US$1.7 million) (30 June 2020: US$52.1 
million) following the Restructuring completed in March 2021, the Company's 
guarantees related to the BEE Partner debt facilities were US$nil (30 June 
2020: US$40.0 million); refer to 'The Restructuring' section on page 16 for 
further detail. Bank debt facilities undrawn and available to the Group at 30 
June 2021 were US$7.7 million (30 June 2020: US$nil). 
 
Consolidated net debt at 30 June 2021 was US$228.2 million (30 June 2020: 
US$693.2 million). 
 
Covenant measurements attached to banking facilities 
 
The Company's EBITDA-related covenants associated with its banking facilities 
during the Year were as outlined below: 
 
·    to maintain a 1.3x debt service cover ratio tested semi-annually on a 
rolling 12-month basis; and 
 
·    to maintain liquidity requirements, being the aggregate of the undrawn 
amounts available under the RCF and consolidated cash and cash equivalents 
(excluding diamond debtors) not falling below ZAR200 million (US$14.0 million). 
 
Going concern considerations 
 
During FY 2020 the going concern consideration was dependent on the successful 
completion of the Restructuring. In March 2021, the Restructuring was 
successfully completed which resulted in solid progress towards stabilising the 
balance sheet and cash reserves. 
 
The Group closely monitors and manages its liquidity risk, and cash forecasts 
are regularly produced and run for different scenarios. Careful consideration 
was given to potential risks to the forecasts under the review period. The 
Board carefully considered risks associated with COVID-19 which were considered 
to focus primarily on the potential for further production disruption, deferral 
of tenders due to travel restrictions and adverse impacts on diamond pricing. 
 
In light of both normal trading risks and elevated risks associated with the 
potential impact of the COVID-19 pandemic, the following have been key 
considerations for the Board in assessing the Group's ability to operate as a 
going concern at the date of this report: 
 
·    an unforeseen disruption to operations at its South African mines due to 
either COVID-19 restrictions or otherwise; 
 
·    an unforeseen deferral of a rough diamond tender, due to COVID-19 
restrictions, coupled with a significant price decline at an assumed subsequent 
private sale (in line with a similar process followed in FY 2020); 
 
·    a sustained 5% decrease in forecast rough diamond prices throughout the 
forecast period; and 
 
·    an increase in forecast operating cost. 
 
Under the base case, the forecasts indicate that the Company will be able to 
operate within covenants set out in the financing agreements and maintain 
sufficient liquidity. 
 
However, as detailed above, the first lien covenants were set with limited 
headroom to the Company's base case. As such, results of the Company's stress 
testing indicate that in the event of a combination of all tested scenarios, 
possible covenant breaches associated with the South African banking facilities 
may occur at June 2022, while a breach is also projected in December 2022 on an 
individual stress test basis. At the time of possible covenant breaches under 
these scenarios, projected cash balances exceed outstanding debt under these 
facilities, which would allow the Group to fully pay down the drawn facilities 
prior to the breach occurring while maintaining adequate liquidity. The 
forecasts indicate that under the stress-tested scenarios, the Group is not 
reliant on the facilities. 
 
The Board is of the view that the longer-term fundamentals of the diamond 
market remain sound and that the Group will continue to benefit from Project 
2022 (which includes increased production and reduced spend) throughout the 
review period and beyond. 
 
Based on its assessment of the forecasts, principal risks and uncertainties and 
mitigating actions considered available to the Group in the event of downside 
scenarios, the Board confirms that it is satisfied that the Group will be able 
to continue to operate and meet its liabilities as they fall due over the 
review period. Accordingly, the Board has concluded that the going concern 
basis in the preparation of the financial statements is appropriate and that 
there are no material uncertainties that would cast doubt on that basis of 
preparation. 
 
BEE loans receivable 
 
BEE loans receivable of US$46.6 million (FY 2020: US$137.0 million) relate to 
advances provided to the Group's BEE Partners to enable them to discharge 
interest and capital commitments under the BEE Lender facilities, advances to 
the BEE Partners to enable trickle payment distributions to both Kago Diamonds 
(Pty) Ltd's ("Kago Diamonds") shareholders and to the beneficiaries of the 
Itumeleng Petra Diamonds Employee Trust ("IPDET") (Petra Directors and Senior 
Managers do not qualify as beneficiaries under the IPDET Trust Deed), and 
financing of their interests in the Koffiefontein mine. As part of the 
Restructuring, an offset agreement was entered into between the Company and its 
BEE Partners allowing for the offsetting of the BEE loan receivable against the 
BEE loan payable, thus resulting in a net BEE loan receivable due from the BEE 
Partners. The repayment of these loans by the mines to the BEE Partners will be 
from future free cashflows generated by the mining operations. 
 
As detailed in the section "Impairment of BEE loans receivable - expected 
credit loss provision", an IFRS 9 estimated credit loss assessment was 
conducted at the end of the Year which resulted in a partial net reversal of 
the expected credit loss provision of US$5.8 million, following a US$10.9 
million expected credit loss provision being raised against the BEE loans 
receivable at 30 June 2020. Refer to note 13 for further detail. 
 
During the Year, Petra advanced US$4.7 million (FY 2020: US$12.2 million) to 
facilitate the servicing of capital and interest payments on behalf of the BEE 
Partners and US$2.3 million (FY 2020: US$1.9 million) for distributions to the 
beneficiaries of the IPDET and shareholders of Kago Diamonds. 
 
Refer to note 13 further detail on BEE loans receivable. 
 
The Restructuring 
 
In March 2020, Petra launched a strategic review, in conjunction with a set of 
independent advisers, in order to evaluate an optimal long-term capital 
structure for the Group. The key focus of this review was to bring down the 
Company's leverage to a manageable level and it therefore involved extensive 
consultations with the ad hoc group ("AHG") of the Company's US$650 million 
7.25% senior secured second lien notes due in May 2022, as well as with the 
South African Lender Group. The review also aimed to assess all strategic 
options available to maximise value to stakeholders and included a formal sale 
process, whereby interested parties could submit bids either for Petra or for 
any parts of the business or assets of the Group. 
 
In October 2020, the Company announced that it had reached agreement in 
principle with the AHG and the South African Lender Group on a common set of 
commercial terms with respect to the Restructuring. Petra signed a Lock-Up 
Agreement on 17 November 2020 with the parties to the Restructuring, which 
binds each party into supporting the Restructuring on the proposed terms. The 
Company's shareholders subsequently approved the scheme at a Special General 
Meeting on 13 January 2021. On 10 March 2021 the Company announced that it had 
completed the implementation of the Restructuring. 
 
The key features of the Restructuring were as follows: 
 
1.  Partial reinstatement of the Notes debt and the contribution by holders of 
the existing Notes of US$30.0 million in New Money, each to take the form of 
new senior secured second lien notes ("New Notes"). The New Notes of US$336.7 
million (including the New Money and fees paid as part of the transaction in 
New Notes) have a maturity date of five years from completion. The New Notes 
are subject to an interest rate of 10.50% Payment in Kind for the first 24 
months, reverting to a cash interest rate of 9.75% thereafter. Those 
Noteholders that contributed to the New Money were entitled to a greater 
portion of the New Notes. 
 
2.  Conversion of the remainder of the Notes debt into equity, which resulted 
in the Noteholder group holding 91% of the enlarged share capital of Petra 
Diamonds Limited, with the existing shareholders holding the remaining 9%. 
Those Noteholders that contributed to the New Money were entitled to a greater 
portion of the equity. 
 
3.  The restructuring of the first lien facilities provided by the South 
African Lender Group, with a new term loan of ZAR1.2 billion in order to 
refinance the existing drawn ZAR500 million WCF and the BEE Facilities 
(approximately ZAR683 million), and a new RCF of ZAR560 million, constituted by 
the rollover of the existing RCF but upsized by ZAR160 million. Both facilities 
have a maturity date of three years from completion and a first lien debt 
service cover ratio of 1.3x tested semi-annually on a rolling 12-month basis 
which, if breached, will give rise to an event of default under the new bank 
facilities. Both facilities have an interest rate of JIBAR + 5.25% per annum. 
 
4.  New governance arrangements, whereby up to four of the largest Noteholders 
as determined by the Restructuring Lock-Up Agreement and who individually hold 
at least 5% of the shares in Petra at the closing of the Restructuring, shall 
have a 'Nomination Right' to nominate a person for appointment to the Board as 
a non-independent Non-Executive Director, as well as the right to appoint an 
observer to the Board (who will not have voting rights at Board meetings). Any 
Board appointments must comply with the UK Listing Rules and the Corporate 
Governance Code. 
 
5.  Certain cashflow controls will be introduced. 
 
The full terms of the Restructuring are listed in the prospectus released on 22 
December 2020 and further details are provided in note 8. 
 
Other liabilities 
 
Other than trade and other payables of US$49.1 million (comprising US$16.8 
million trade creditors, US$5.8 million employee-related accruals and US$26.5 
million other payables) (FY 2020: US$52.5 million), the remaining liabilities 
on the balance sheet mainly comprise provisions for rehabilitation liabilities, 
post-retirement employee-related provisions, provisions for costs and fees 
relating to investigation and settlement of human rights claims, lease 
liabilities and deferred tax. 
 
During the Year, the Group's rehabilitation provision increased from US$45.3 
million to US$57.9 million, mainly attributable to Cullinan's estimated period 
to decommissioning reducing from 45 years to 25 years, reflecting updated 
scoping studies for future development outside of its current approved LOM, 
resulting in an increase of US$5.8 million in the provision as expected timing 
of the rehabilitation costs are brought forward and the effect of foreign 
exchange movements of US$9.0 million. 
 
Capex 
 
Total Group Capex for the Year reduced to US$23.5 million (FY 2020: US$28.4 
million), comprising: 
 
·    US$16.9 million expansion Capex (FY 2020: US$21.8 million); 
 
·    US$5.6 million sustaining Capex (FY 2020: US$6.8 million); and 
 
·    corporate/exploration Capex of US$1.0 million (FY 2020: (US$0.2 million) 
net recoupment). 
 
Capex                                          Unit      FY 2021      FY 2020 
 
Cullinan                                       US$m      16.8         16.4 
 
Finsch                                         US$m      4.0          8.4 
 
Koffiefontein                                  US$m      1.7          3.8 
 
Subtotal - Capex incurred by operations        US$m      22.5         28.6 
 
Corporate/exploration1                         US$m      1.0          (0.2) 
 
Total Group Capex                              US$m      23.5         28.4 
 
Note: 
 
1. Petra operates an internal projects / construction division and, although 
this division's spend is reported in the Group's total Capex, it is policy not 
to account for it on a specific mine's Capex until the work completed is 
invoiced to the relevant operation. 
 
Dividend 
 
Distribution covenants were not met for the measurement period to 30 June 2021 
and as a result no dividend is declared for FY 2021 (30 June 2020: US$nil). 
 
OPERATIONAL REVIEW 
 
Combined Operations (Excluding Williamson)¹ 
 
                                  Unit       FY 2021       FY 2020      Variance 
 
Sales 
 
Diamonds sold                    Carats       3,930,136     2,598,252           51% 
 
Revenue                           US$M            402.3         243.3           65% 
 
Production 
 
ROM diamonds                     Carats       3,057,860     3,155,237           -3% 
 
Tailings diamonds                Carats         182,452       135,809          +34% 
 
Total diamonds                   Carats       3,240,312     3,291,046           -2% 
 
Tonnages 
 
ROM tonnes                         Mt               7.7           7.5           +3% 
 
Tailings & other1 tonnes           Mt               0.4           0.5          -20% 
 
Total tonnes                       Mt               8.1           8.0           +1% 
 
On mine cash costs                US$M            197.6         191.2            3% 
 
Capex 
 
Expansion                         US$M             16.9          21.8          -23% 
 
Sustaining                        US$M              6.6           6.6            0% 
 
Total                             US$M             23.5          28.4          -17% 
 
1.     Williamson results are shown separately below. 
 
FY 2021 production decreased 2% to 3,240,312 carats (FY 2020: 3,291,046 
carats), notwithstanding record annual production from Cullinan, of 1.94 Mcts. 
As previously announced, production at Finsch was impacted by unexpected levels 
of waste ingress during Q2 FY 2021, with subsequent mitigating measures 
reducing throughput during the second half of the Year. In addition, production 
at both Finsch and Koffiefontein was impacted by the high level of rainfall 
during the third quarter. Despite these factors, the Group's ROM tonnages for 
the Year increased by 3% to 7.7 Mt (FY 2020: 7.5 Mt). 
 
Cullinan - South Africa 
 
 
                             Unit        FY 2021         FY 2020         Variance 
 
Sales 
 
Revenue                    US$M                250.6            116.5           +115% 
 
Diamonds sold              Carats          2,261,058        1,183,745            +91% 
 
Average price per carat    US$                   111               98            +13% 
 
ROM Production 
 
Tonnes treated             Tonnes          4,614,802        3,972,682            +16% 
 
Diamonds produced          Carats          1,761,490        1,482,482            +19% 
 
Grade1                     Cpht                 38.2             37.3             +2% 
 
Tailings Production 
 
Tonnes treated             Tonnes            445,538          257,549            +73% 
 
Diamonds produced          Carats            182,452           95,918            +90% 
 
Grade1                     Cpht                 41.0             37.2            +10% 
 
Total Production 
 
Tonnes treated             Tonnes          5,060,339        4,230,231            +20% 
 
Diamonds produced          Carats          1,943,942        1,578,400            +23% 
 
Costs 
 
On-mine cash cost per      ZAR                   260              270             -4% 
tonne treated 
 
Capex 
 
Expansion Capex            US$M                 14.5             13.0            +12% 
 
Sustaining Capex           US$M                  2.3              3.4            -32% 
 
Total Capex                US$M                 16.8             16.4             +2% 
 
Notes: 
 
1.     The Company is not able to precisely measure the ROM / tailings grade 
split because ore from both sources is processed through the same plant; the 
Company therefore back-calculates the grade with reference to resource grades. 
 
Cullinan achieved record production in FY 2021 of 1,943,942 carats (FY 2020: 
1,578,400 carats), with underground throughput of 4.6 Mt and an average ROM 
grade of 38.2 cpht (FY 2020: 37.3 cpht). A total of 0.4 Mt of recovery tailings 
were treated with an average grade of 41.0 cpht. 
 
Cullinan's revenue increased by 32% to US$250.6 million for the Year (FY 2020: 
US$116.5 million), due to a combination of a 91% increase in diamonds sold and 
a 13% increase in the average price per carat for the Period. 
 
The full range of diamonds was recovered at the Cullinan mine in FY 2021, 
including a number of exceptional stones, as set out on pages 6 to 7 of this 
announcement. 
 
Costs 
 
The on-mine unit cash cost per total tonne treated decreased to ZAR260/t (FY 
2020: ZAR270/t), mainly due to increased tonnages offset by inflationary 
increases. 
 
Capex 
 
FY 2021 Capex of US$16.8 million was mainly spent on underground development in 
the CC1E SLC area, as well as continued construction of the North Crusher 2 
servicing the C-Cut Phase 1 production area. 
 
FY 2022 Capex for Cullinan is guided at ca. US$48 - 54 million, primarily 
relating to underground development of the CC1E Phase 2 production areas and 
certain feasibility studies to be conducted related to shaft infrastructure, as 
well as fines residue deposit facilities and Stay in Business Capex. 
 
Finsch - South Africa 
 
 
                              Unit       FY 2021         FY 2020        Variance 
 
Sales 
 
Revenue                     US$M               123.5           101.1            +22% 
 
Diamonds sold               Carats         1,602,312       1,348,181            +19% 
 
Average price per carat     US$                   77              75             +3% 
 
ROM Production 
 
Tonnes treated              Tonnes         2,311,195       2,719,389            -15% 
 
Diamonds produced           Carats         1,237,219       1,603,678            -23% 
 
Grade1                      Cpht                53.5            59.0             -9% 
 
Tailings Production 
 
Tonnes treated              Tonnes                 0         211,541           -100% 
 
Diamonds produced           Carats                 0          39,890           -100% 
 
Grade1                      Cpht                   0            18.9           -100% 
 
Total Production 
 
Tonnes treated              Tonnes         2,311,195       2,930,930            -21% 
 
Diamonds produced           Carats         1,237,219       1,643,568            -25% 
 
Costs 
 
On-mine cash cost per tonne ZAR                  536             477             12% 
treated 
 
Capex 
 
Expansion Capex             US$M                 1.7             6.1            -72% 
 
Sustaining Capex            US$M                 2.3             2.3              0% 
 
Total Capex                 US$M                 4.0             8.4            -52% 
 
Note: 
 
1.     The Company is not able to precisely measure the ROM / tailings grade 
split because ore from both sources is processed through the same plant; the 
Company therefore back-calculates the grade with reference to resource grades. 
 
Overall production totalled 1,237,219 carats (FY 2020: 1,643,568 carats), with 
ROM carat production of 1,237,219 carats (FY 2020: 1,603,678 carats) and an 
average ROM grade of 53.5 cpht (FY 2020: 59.0 cpht). 
 
The contribution from underground ROM production decreased to 1,237,219 carats 
(FY 2020: 1,603,678 carats). In H1 FY 2021, ROM volumes mined were impacted by 
the expiry of the temporary continuous operations arrangement during September 
2020, subsequently reinstated during October 2020 that remained in place until 
June 2021. In addition, the Finsch mine experienced higher than expected levels 
of waste ingress in a number of the upper levels of the Block 5 Sub Level Cave, 
which negatively impacted the recovered grade. The Company conducted a detailed 
exercise to better understand this issue and has put a plan in place to 
mitigate the impact. This has included a revision to the draw strategy to limit 
planned draw tonnage, a build-up of inventory rings to allow for increased 
blasting from March 2021, and a change to the drill and blast designs to 
optimise ore extraction. In the longer term, the Company will also investigate 
ore mixing programmes to better assist with the prediction of waste ingress. 
Furthermore, production at the Finsch mine in Q3 FY 2021 was impacted by 
significantly high rainfall. 
 
Revenue increased by 22% to US$123.5 million (FY 2020: US$101.1 million) due to 
a combination of slightly higher sales and a slightly higher average value per 
carat. 
 
Costs 
 
The on-mine cash unit cost increased to ZAR536/t (FY 2020: ZAR477/t), mainly 
due to the reduced throughput. 
 
Capex 
 
FY 2021 Capex of US$4.0 million was mainly spent on underground development and 
infrastructure relating to the Block 5 SLC. 
 
FY 2022 Capex is guided at ca. US$21 - 25 million, primarily relating to the 
exploration drilling and feasibility studies associated with the new 3-Level 
SLC, underground development in 78 Level SLC Phase 2 and Stay in Business 
Capex. 
 
Koffiefontein - South Africa 
 
 
                              Unit       FY 2021         FY 2020        Variance 
 
Sales 
 
Revenue                     US$M                28.0            25.7             +9% 
 
Diamonds sold               Carats            66,650          66,326              0% 
 
Average price per carat     US$                  419             387             +8% 
 
ROM Production 
 
Tonnes treated              Tonnes           754,369         891,705            -15% 
 
Diamonds produced           Carats            59,151          69,077            -14% 
 
Grade                       Cpht                 7.8             7.7             +1% 
 
Total Production 
 
Tonnes treated              Tonnes           754,369         891,705            -15% 
 
Diamonds produced           Carats            59,151          69,077            -14% 
 
Costs 
 
On-mine cash cost per tonne ZAR                  651             510             28% 
treated 
 
Capex 
 
Expansion Capex             US$M                 0.6             2.7            -78% 
 
Sustaining Capex            US$M                 1.1             1.1              0% 
 
Total Capex                 US$M                 1.7             3.8            -55% 
 
ROM production totalled 59,151 carats (FY 2020: 69,077 carats), with ROM 
tonnage throughput down 15% on FY 2020 impacted by the significant rainfall 
experienced in Q3 FY 2021; overall carat produced decreased by 14%, with the 
average ROM grade remaining broadly flat at 7.8 cpht (FY 2020: 7.7 cpht). 
 
Revenue increased 9% to US$28.0 million (FY 2020: US$25.7 million) for the 
Year, with an 8% increase in the average price per carat. 
 
Costs 
 
The on-mine cash unit cost increased to ZAR651/t (FY 2020: ZAR510/t), mainly 
due to decreased tonnages. 
 
Capex 
 
FY 2021 Capex of US$1.7 million was mainly spent on Stay in Business Capex. 
 
FY 2022 Capex is guided at ca. US$1 - 3 million primarily relating Stay in 
Business Capex. 
 
Williamson - Tanzania (held for sale at 30 June 2021) 
 
 
                            Unit         FY 2021         FY 2020        Variance 
 
Sales 
 
Revenue                     US$M                 4.6            52.5            -91% 
 
Diamonds sold               Carats            30,339         297,245            -90% 
 
Average price per carat     US$                  150             177            -15% 
 
ROM Production 
 
Tonnes treated              Tonnes                 0       3,980,438           -100% 
 
Diamonds produced           Carats                 0         287,356           -100% 
 
Grade                       Cpht                   0             7.2           -100% 
 
Alluvial Production 
 
Tonnes treated              Tonnes                 0         302,567           -100% 
 
Diamonds produced           Carats                 0          10,774           -100% 
 
Grade                       Cpht                   0             3.6           -100% 
 
Total Production 
 
Tonnes treated              Tonnes                 0       4,283,005           -100% 
 
Diamonds produced           Carats                 0         298,130           -100% 
 
Costs 
 
On-mine cash cost per tonne USD                  n/a            10.2             n/a 
treated 
 
Capex 
 
Expansion Capex             US$M                 0.0             0.0              0% 
 
Sustaining Capex            US$M                 0.3             8.0            -96% 
 
Total Capex                 US$M                 0.3             8.0            -96% 
 
The Williamson mine was placed on care and maintenance during April 2020 and 
remained on care and maintenance throughout FY 2021 (FY 2020 production: 
298,130 carats). 
 
Revenue decreased 91% to US$4.6 million (FY 2020: US$52.5 million), with sales 
limited to the final parcel recovered prior to the commencement of care and 
maintenance. Cash on-mine costs, mainly associated with care and maintenance 
expenses, totalled around US$12.7 million for the Year. 
 
Capex 
 
FY 2021 Capex of US$0.3 million mainly related to Stay in Business Capex. 
 
Project 2022 Update 
 
Project 2022 commenced in July 2019 with the aim of identifying opportunities 
to increase throughput across the business, drive efficiencies and facilitate 
continuous improvement. A key objective of this project was to target delivery 
of significant free cashflow over three years, though this has been impeded 
primarily by the weakness in the diamond market, compounded further by 
precautionary measures imposed at the operations related to the COVID-19 
pandemic. 
 
Project 2022 is not only now fully operational across the Group, but its 
principles of focused and continuous improvement are being entrenched in the 
operating model and are becoming part of the culture of the Company. 
 
Weekly Project 2022 Results Action Review meetings ("RARs") are held within the 
first four structural layers of the organisation, starting with the CEO, to 
monitor progress, provide support and resourcing where required and ensure we 
are on track to deliver on our targets. In addition, we are in the process of 
aligning our various incentive and production bonus schemes to support and 
reward delivery of our Project 2022 targets across the Group. 
 
The implementation of throughput ideas remains the largest contributor to 
improving operational cash flow, led by Cullinan's record recovery of 1.94 Mcts 
in FY 2021. Due to reduced pricing coupled with lower throughput at Finsch, 
Koffiefontein and Williamson, expectations on the annualised contribution from 
throughput initiatives were reduced to around US$50 million in the Company's Q3 
FY 2021 Trading Update released in April 2021 and the Company remains confident 
that it will achieve the annualised contribution of US$50 million, supported by 
measures taken to curtail the waste ingress at Finsch. 
 
Initiatives undertaken to drive cost efficiencies are expected to contribute an 
annualised US$20 million going into FY 2022, which remains unchanged from 
previous guidance. 
 
The Project 2022 Organisational Design Review Phase 1 was completed during FY 
2021 and will result in updated role descriptions providing for clearer line of 
site and improved accountability. 
 
Gross Reserves and Resources 
 
Petra manages one of the world's largest diamond resources of 230 Mcts and this 
major resource implies that the potential mine lives of our core assets could 
be considerably longer than the current mine plans in place at each operation 
or could support higher production rates. 
 
As at 30 June 2021, the Group's gross diamond resources (inclusive of reserves) 
decreased 5% to 230.64 Mcts (30 June 2020: 243.51 Mcts), predominantly due to 
depletions at all mining assets further to ore mined in FY 2021 and the sale of 
Petra's exploration assets in Botswana to Botswana Diamonds PLC, which has 
removed the KX36 kimberlite pipe (Resource of 8.73 Mcts) from the Resource 
Statement. 
 
The Group's gross diamond reserves decreased 14% to 33.33 Mcts (30 June 2020: 
38.86 Mcts) primarily due to mining depletions, the impact of increased pit 
scaling and waste ingress on the remaining reserves in the current SLC at 
Finsch, changes to the mine plan and mining method for the future block at 
Finsch, and Williamson remaining on care and maintenance with an associated 
reduction in reserve estimate given the remaining tenure of the Special Mining 
License. 
 
The following table summarises the gross Reserves and Resources status of the 
combined Petra Group operations as at 30 June 2021 and includes the Williamson 
operation. 
 
Category                                               Gross 
 
                                    Tonnes        Grade               Contained 
                                  (millions)         (cpht)           Diamonds 
                                                                       (Mcts) 
 
Reserves 
 
Proved                                 -               -                 - 
 
Probable                             116.3            28.7              33.33 
 
Sub-total                            116.3            28.7              33.33 
 
Resources 
 
Measured                               -                -                 - 
 
Indicated                            329.1            47.2             155.38 
 
Inferred                            1,292.3            5.8              75.27 
 
Sub-total                           1,621.3           14.2             230.64 
 
The full 2021 Resource Statement can be accessed at https:// 
www.petradiamonds.com/our-operations/reserves-resources/. 
 
Labour relations 
 
Stable labour relations are essential to our productivity and the delivery of 
our strategy. We therefore remain highly focused on managing labour relations 
and on maintaining open and effective communication channels with our employees 
and the appropriate union representatives at our operations. 
 
Petra did not experience any industrial action during the Year and has seen 
largely stable labour relations over the last four years. Post Year end, the 
Company announced that it had reached agreement on a new three-year wage 
agreement with NUM for employees in the Paterson A and B Bands at the South 
African operations covering FY 2022 to FY 2024, which should allow for further 
stability over this timeframe. 
 
GOVERNANCE 
 
Board Succession 
 
Dr Pat Bartlett, Non-Executive Director, retired from the Board after nearly 
nine years' service, on 30 June 2020, and Mr Tony Lowrie, Senior Independent 
Director, retired from the Board in November 2020, after more than eight years' 
service. Ms Varda Shine subsequently assumed the role of Senior Independent 
Non-Executive Director in November 2020. 
 
As previously announced, Mr Gordon Hamilton, Independent Non-Executive 
Director, will retire from the Board and as Chair of the Audit and Risk 
Committee at the conclusion of the FY 2021 Annual General Meeting on 19 
November 2021.  On 1 July 2021, the Company announced the appointment of Ms 
Deborah Gudgeon as an Independent Non-Executive Director and Chair-designate of 
the Audit and Risk Committee. 
 
Following completion of the Restructuring in March 2021, the appointment of Mr. 
Matthew Glowasky as a Non-Independent Non-Executive Director of the Company 
became effective, further to his nomination by Monarch Master Funding 2 
(Luxembourg) S.a.r.l. ("Monarch"). In addition, on 1 July 2021 Ms Alexandra 
Watson and Mr Johannes Bhatt were both appointed as Non-Independent 
Non-Executive Directors, having been nominated by Franklin Templeton and 
Monarch respectively. Monarch also exercised their right under the Nomination 
Agreement to appoint Mr. Marius Kraemer as their Board Observer with effect 
from 1 July 2021. 
 
The Company welcomes the new Directors, as well as Mr Kraemer as Board 
Observer; together they bring a wealth of experience, complementing that of our 
existing Directors, and their appointments leave the Board well placed to take 
the Company forward. 
 
PRINCIPAL BUSINESS RISKS 
 
The Group is exposed to a number of risks and uncertainties which could have a 
material impact on its long-term development, and performance and management of 
these risks is an integral part of the management of the Group. 
 
A summary of the risks identified as the Group's principal external, operating 
and strategic risks (in no order of priority), which may impact the Group over 
the next twelve months, is listed below. 
 
Risk           Risk     Risk     Nature   Change in FY 2021 
               appetite rating   of risk 
 
1. Country     High     High     Long     No change - risk of political instability 
and political                    term     remains in South Africa, illustrated by civil 
                                          unrest shortly after Year end, and certain 
                                          components of the new Mining Charter remain 
                                          under review. In Tanzania, the risk of 
                                          political instability remains high further to 
                                          the death of the Tanzanian President. Petra 
                                          is in ongoing dialogue with the Government of 
                                          Tanzania and local advisers in relation to 
                                          legislative developments, overdue VAT 
                                          receivables and the blocked parcel of 
                                          diamonds from Williamson. 
 
2. COVID-19    Medium   High     Short to No change - the impact of COVID-19 is 
pandemic                         medium   ongoing, but the mitigating processes Petra 
(operational                     term     has put in place are enabling the Company to 
impact)                                   manage the pandemic without a significant 
                                          impact on production and sales. 
 
3. Currency    High     Medium   Long     No change - the ZAR/USD exchange rate 
                                 term     continues to be volatile. The short-term 
                                          strengthening in the Rand has the capacity to 
                                          offset some of the improvement in Petra's 
                                          realised diamond prices. 
 
4. Diamond     High     Medium   Long     Lower - diamond prices recovered during H2 FY 
price                            term     2021 and overall increased ca. 9% during the 
                                          Year, following the major disruption of the 
                                          diamond pipeline in FY 2020 caused by the 
                                          COVID 19 pandemic. 
 
5. Financing   Medium   Medium   Short to Lower - progress with Project 2022 
                                 medium   initiatives led to an improvement in 
                                 term     operational free cashflow supported by 
                                          stronger diamond markets during H1 CY'21, 
                                          despite the negative impact of COVID-19 
                                          pandemic.  Following shareholder, noteholder 
                                          and regulatory approvals, the capital and 
                                          debt restructure project which was a key 
                                          focus area for management was completed. 
 
6. Labour      Medium   Medium   Short to Lower - stable labour relations were 
relations                        medium   experienced during the Year. Post Year end, 
                                 term     the Company reached agreement on a new 
                                          three-year wage agreement with NUM for 
                                          employees in the Paterson A and B Bands at 
                                          the South African operations covering FY 
                                          2022 to FY 2024. 
 
7. Licence to  Medium   Medium   Long     No change - continued compliance in all 
operate                          term     material aspects with relevant laws, 
                                          regulations and standards. Incorporated in 
                                          Petra's licence to operate is its continued 
                                          focus on safety, as well as its impacts on 
                                          the environment and communities. In May 
                                          2021, Petra announced the findings of the 
                                          independent Board Sub-Committee into the 
                                          alleged human rights breaches in Tanzania, 
                                          as well as setting out the mitigating and 
                                          preventative actions the Company had taken 
                                          or was putting place to address the 
                                          findings. The Company also reached a 
                                          settlement, on a no admission of liability 
                                          basis, in relation to claims of alleged 
                                          human rights breaches. The risk of illegal 
                                          mining at Williamson is ongoing. 
 
8. Mining and  Medium   Medium   Long     Higher - positive throughput improvements 
production                       term     driven by Project 2022 led to a strong 
                                          operational performance at Cullinan during 
                                          FY 2021, offset by work to curtail waste 
                                          ingress and pit sidewall instability at 
                                          Finsch, and rainfall impacting production at 
                                          Finsch and Koffiefontein in Q3 FY 2021. With 
                                          Williamson in care and maintenance, low 
                                          production levels at Koffiefontein and lower 
                                          production at Finsch, there is greater 
                                          dependency on production at Cullinan. 
 
9. ROM grade   Medium   Medium   Short    No change - Cullinan ROM grades were in line 
and product                      term     and slightly above expectations, whilst both 
mix volatility                            Finsch and Koffiefontein were below 
                                          expectations. Finsch's production was 
                                          impacted by waste ingress and the medium to 
                                          long term impact on the mine's LOM planning 
                                          is being reviewed. The mines recovered the 
                                          full range of diamonds in FY 2020, with a 
                                          higher recovery of specials at Cullinan. 
 
OUTLOOK 
 
The medium to long-term outlook for our market and for our business remains 
positive. The completion of the Company's financial restructuring in FY 2021 
showed that we retain significant support from the investment market and has 
provided enhanced stability for the Company to deliver on its operational 
plans. 
 
I believe that Petra has high quality assets, a skilled and motivated 
workforce, a refreshed company culture, ongoing optimisation plans and support 
from our stakeholders. This, set against an improving diamond market, positions 
the Company well for the years to come. 
 
Richard Duffy 
 
Chief Executive 
 
14 September 2021 
 
Notes 
 
1.     The following exchange rates have been used for this announcement: 
average for the Year US$1:ZAR15.41 (FY 2020: US$1:ZAR15.68); closing rate as at 
30 June 2021 US$1:ZAR14.27 (30 June 2020: US$1:ZAR17.32). 
 
2.     The following definitions have been used in this announcement: 
 
a.     ct: carat 
 
b.     cpht: carats per hundred tonnes 
 
c.     CY: calendar year 
 
d.     FY: financial year 
 
e.     Kcts: thousand carats 
 
f.      Mctpa: million carats per annum 
 
g.     Mcts: million carats 
 
h.     mL: metre level 
 
i.      Mt: million tonnes 
 
j.      Mtpa: million tonnes per annum 
 
k.     ROM: run-of-mine, i.e. relating to production from the primary orebody 
 
l.      SLC: sub-level cave, a variation of block caving 
 
APPIX 
 
The below operational results include Williamson and are provided for reference 
only: 
 
Combined Operations (Including Williamson) 
 
                                Unit            FY 2021       FY 2020      Variance 
 
Sales 
 
Diamonds sold                   Carats        3,960,475     2,895,497           37% 
 
Revenue                         US$M              406.9         295.8           38% 
 
Production 
 
ROM diamonds                    Carats        3,057,860     3,442,593          -11% 
 
Tailings & other1 diamonds      Carats          182,452       146,583          +24% 
 
Total diamonds                  Carats        3,240,312     3,589,176          -10% 
 
Tonnages 
 
ROM tonnes                      Mt                  7.7          11.5          -33% 
 
Tailings & other1 tonnes        Mt                  0.4           0.8          -50% 
 
Total tonnes                    Mt                  8.1          12.3          -34% 
 
On mine cash costs              US$M              276.1         225.3           23% 
 
Capex 
 
Expansion                       US$M               16.9          21.8          -23% 
 
Sustaining                      US$M                6.9          14.6          -53% 
 
Total                           US$M               23.8          36.4          -35% 
 
Notes: 
 
1.     'Other' represents alluvial diamond mining at Williamson. 
 
               PETRA DIAMONDS LIMITED - PRELIMINARY ANNOUNCEMENT 
 
                    UNAUDITED CONSOLIDATED INCOME STATEMENT 
 
                        FOR THE YEARED 30 JUNE 2021 
 
US$ million                                                Notes        2021          20201 
 
Revenue                                                      4         402.3          243.3 
 
Mining and processing                                                (337.2)        (238.2) 
 
Other direct income                                                      1.7            1.0 
 
Exploration expenditure                                     17             -          (0.6) 
 
Corporate expenditure including settlement costs             5        (21.3)          (8.7) 
 
Impairment of non-financial assets                          16        (17.7)         (50.5) 
 
Impairment of BEE loans receivable - expected credit loss   13           5.8         (10.9) 
reversal / (charge) 
 
Total operating costs                                                (368.7)        (307.9) 
 
Profit on disposal of subsidiary                            17          14.7              - 
 
Financial income                                             6          84.1            7.9 
 
Financial expense                                            6        (74.0)        (160.8) 
 
Gain on extinguishment of Notes net of unamortised costs    6,8        213.3              - 
 
Profit / (loss) before tax                                             271.7        (217.5) 
 
Income tax (charge) / credit                                          (23.0)           52.5 
 
Profit / (loss) for the year from continuing operations                248.7        (165.0) 
 
Loss on discontinued operations including associated        17                       (58.0) 
impairment charges (net of tax)                                       (52.1) 
 
Profit / (loss)  for the Year                                          196.6        (223.0) 
 
Attributable to: 
 
Equity holders of the parent company                                   187.1        (190.0) 
 
Non-controlling interest                                                 9.5         (33.0) 
 
                                                                       196.6        (223.0) 
 
Earnings / (loss) per share attributable to the equity 
holders of the parent during the Year: 
 
Continuing operations: 
 
Basic earnings / (loss) per share   - US cents              14          6.67        (15.26) 
 
Diluted earnings / (loss) per share  - US cents             14          6.67        (15.26) 
 
From continuing and discontinued operations: 
 
Basic earnings / (loss) per share - US cents                14          5.22        (21.96) 
 
Diluted earnings / (loss) per share - US cents              14          5.22        (21.96) 
 
 
1. Comparative results have been restated to reflect the results of Williamson 
within loss on discontinued operations including associated impairment charges 
(net of tax) as per the requirements of IFRS 5 (refer to note xx). 
 
               PETRA DIAMONDS LIMITED - PRELIMINARY ANNOUNCEMENT 
 
           UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
 
                        FOR THE YEARED 30 JUNE 2021 
 
US$ million                                                             2021           2020 
 
Profit / (loss) for the Year                                           196.6        (223.0) 
 
Exchange differences on translation of the share-based                   0.2          (0.2) 
payment reserve 
 
Exchange differences on translation of foreign operations1,2            64.2         (91.3) 
 
Exchange differences on non-controlling interest1                      (1.2)          (0.6) 
 
Total comprehensive income / (expense) for the Year                    259.8        (315.1) 
 
 
 
Total comprehensive income and expense attributable to: 
 
Equity holders of the parent company                                   251.5        (281.5) 
 
Non-controlling interest                                                 8.3         (33.6) 
 
                                                                       259.8        (315.1) 
 
¹ These items will be reclassified to the consolidated income statement if 
specific future conditions are met. 
 
² The Company has disclosed the net assets of the Williamson mine under 
non-current assets held for sale and liabilities directly associated with 
non-current assets held for sale in the Statement of Financial Position. 
 
               PETRA DIAMONDS LIMITED - PRELIMINARY ANNOUNCEMENT 
 
            UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
 
                                AT 30 JUNE 2021 
 
US$ million                                              Notes        2021           2020 
 
ASSETS 
 
Non-current assets 
 
Property, plant and equipment                             7          696.8          675.8 
 
Right-of-use assets                                                    1.2            4.9 
 
BEE loans and receivables                                13           46.6          137.0 
 
Other receivables                                                        -           10.3 
 
Deferred tax assets                                                      -           23.3 
 
Total non-current assets                                             744.6          851.3 
 
Current assets 
 
Trade and other receivables                                           50.7           20.0 
 
Inventories                                                           59.9          103.5 
 
Cash and cash equivalents (including restricted                      163.8           67.6 
amounts) 
 
Total current assets                                                 274.4          191.1 
 
Non-current assets classified as held for sale           17           59.6            0.3 
 
Total assets                                                       1,078.6        1,042.7 
 
EQUITY AND LIABILITIES 
 
Equity 
 
Share capital                                            8,9         145.7          133.4 
 
Share premium account                                    8,9         959.5          790.2 
 
Foreign currency translation reserve                               (402.1)        (453.0) 
 
Share-based payment reserve                                            1.8            1.1 
 
Other reserves                                                       (0.8)          (0.8) 
 
Accumulated losses                                                 (253.3)        (440.4) 
 
Attributable to equity holders of the parent company                 450.8           30.5 
 
Non-controlling interest                                            (10.5)         (18.8) 
 
Total equity                                                         440.3           11.7 
 
Liabilities 
 
Non-current liabilities 
 
Loans and borrowings                                     10          400.0              - 
 
Lease liabilities                                                      0.5            1.1 
 
BEE loans payable                                        13              -          108.6 
 
Provisions                                                            71.3           55.6 
 
Deferred tax liabilities                                              48.9           40.5 
 
Total non-current liabilities                                        520.7          205.8 
 
Current liabilities 
 
Loans and borrowings                                     10           30.3          769.0 
 
Lease liabilities                                                      0.5            3.6 
 
Trade and other payables                                              49.1           52.5 
 
Provisions                                                             4.2              - 
 
Total current liabilities                                             84.1          825.1 
 
Liabilities directly associated with non-current         17           33.5            0.1 
assets classified as held for sale 
 
Total liabilities                                                    638.3        1,031.0 
 
Total equity and liabilities                                       1,078.6        1,042.7 
 
               PETRA DIAMONDS LIMITED -PRELIMINARY ANNOUNCEMENT 
 
                       UNAUDITED STATEMENT OF CASH FLOWS 
 
                        FOR THE YEARED 30 JUNE 2021 
 
US$ million                                             Notes        2021           2020 
 
Profit / (loss) before taxation for the Year from                                (275.3) 
continuing and discontinued operation                               219.6 
 
Depreciation of property plant and equipment                         75.9           78.3 
 
Amortisation of right-of-use asset                                    0.9            5.2 
 
Unrealised gain on lease liability                                      -          (0.8) 
 
Impairment charge - non financial assets                 16          17.7           92.3 
 
Impairment charge/(reversal) - other receivables         16             -          (0.4) 
 
Impairment of BEE loans receivable - expected credit     13         (5.8)           10.9 
loss (release) / charge 
 
Gain on extinguishment of Notes net of unamortised       6,8      (213.3)              - 
costs 
 
Loss and impairment charge on discontinued operations    17          43.2              - 
 
Profit on disposal of subsidiary                         17        (14.7)              - 
 
Movement in provisions                                                4.8          (0.1) 
 
Financial income                                          6        (84.1)          (7.9) 
 
Financial expense                                         6          74.0          161.0 
 
Profit on disposal of property, plant and equipment                 (0.6)          (0.1) 
 
Share based payment provision                                         0.5            0.7 
 
Operating profit before working capital changes                     118.1           63.8 
 
(Increase) / decrease in trade and other receivables               (26.9)           11.4 
 
Increase / (decrease) in trade and other payables                     5.5         (15.5) 
 
Decrease / (Increase) in inventories                                 42.8         (32.7) 
 
Cash generated from operations                                      139.5           27.0 
 
Net realised losses on foreign exchange contracts                   (6.1)          (8.3) 
 
Finance expense paid                                                (6.7)         (26.2) 
 
Income tax received / (paid)                                          0.3          (0.6) 
 
Net cash generated from / (utilised by) operating                   127.0          (8.1) 
activities 
 
 
Cash flows from investing activities 
 
Acquisition of property, plant and equipment                       (19.4)         (39.3) 
 
Proceeds from sale of property, plant and equipment                   0.3            0.8 
 
Loans advanced to BEE partners                                      (7.0)         (14.1) 
 
Repayments from KEM JV                                                  -            0.4 
 
Finance income received                                               0.7            1.2 
 
Net cash utilised in investing activities                          (25.4)         (51.0) 
 
Cash flows from financing activities 
 
Cash transaction costs settled - Debt Restructuring       8        (29.9)              - 
 
Cash paid on lease liabilities                                      (0.7)          (5.0) 
 
Increase in borrowings                                  8,18         30.0          100.9 
 
Repayment of borrowings                                  18         (7.4)         (43.5) 
 
Net cash (utilized) / generated from financing                      (8.0)           52.4 
activities 
 
Net increase / (decrease) in cash and cash equivalents               93.6          (6.7) 
 
Cash and cash equivalents at beginning of the Year                   53.6           71.7 
 
Effect of exchange rate fluctuations on cash held                     9.7         (11.4) 
 
Cash and cash equivalents at end of the Year1                       156.9           53.6 
 
The cashflows specific to the discontinued operation net of associated 
impairments (net of tax) are included in the amounts above and are disclosed in 
note 17. 
 
¹ Cash and cash equivalents in the Consolidated Statement of Financial Position 
includes restricted cash of US$16.1 million (30 June 2020: US$14.0 million) and 
unrestricted cash of US$147.7 million (30 June 2020: US$53.6 million) and 
excludes unrestricted cash attributable to Williamson of US$9.2 million. 
 
               PETRA DIAMONDS LIMITED - PRELIMINARY ANNOUNCEMENT 
 
             UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
 
                        FOR THE YEARED 30 JUNE 2021 
 
(Unaudited)                           Share      Share     Foreign Share-based    Hedging 
                                    capital    premium    currency     payment  and other 
                                               account translation     reserve   reserves 
US$ million                                                reserve 
 
At 1 July 2020                        133.4      790.2     (453.0)         1.1      (0.8) 
 
Profit for the Year                       -          -           -           -          - 
 
Other comprehensive income /              -          -        64.2         0.2          - 
(expense) 
 
Recycling of foreign currency             -          -      (13.3)           -          - 
translation reserve on disposal 
of Sekaka (refer note 17) 
 
Equity settled share based                -          -           -         0.5          - 
payments 
 
Allotments during the Year: 
 
- Ordinary shares - Debt for           12.3      169.3           -           -          - 
equity issue (net of US$12.3 
million issue costs) - refer to 
note 8 
 
At 30 June 2021                       145.7      959.5     (402.1)         1.8      (0.8) 
 
 
 
(Unaudited)                            Accumulated  Attributable Non-controlling Total 
                                       losses       to the       interest        equity 
                                                    parent 
US$ million 
 
At 1 July 2020                         (440.4)      30.5         (18.8)          11.7 
 
Profit for the Year                    187.1        187.1        9.5             196.6 
 
Other comprehensive income / (expense) -            64.4         (1.2)           63.2 
 
Recycling of foreign currency          -            (13.3)       -               (13.3) 
translation reserve on disposal of 
Sekaka (refer note 17) 
 
Equity settled share based payments    -            0.5          -               0.5 
 
Allotments during the Year: 
 
- Ordinary shares - Debt for equity    -            181.6        -               181.6 
issue (net of US$12.3 million issue 
costs) - refer to note 8 
 
At 30 June 2021                        (253.3)      450.8        (10.5)          440.3 
 
               PETRA DIAMONDS LIMITED - PRELIMINARY ANNOUNCEMENT 
 
             UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
 
                        FOR THE YEARED 30 JUNE 2021 
 
(Unaudited)                           Share      Share     Foreign Share-based    Hedging 
                                    capital    premium    currency     payment  and other 
                                               account translation     reserve   reserves 
US$ million                                                reserve 
 
12 month Period ended 20 June 
2020: 
 
At 1 July 2019                        133.4      790.2     (361.7)         6.2      (0.8) 
 
Loss for the Year                         -          -           -           -          - 
 
Other comprehensive expense               -          -      (91.3)       (0.2)          - 
 
Transfer between reserves -               -          -           -           -          - 
Williamson non-controlling 
interest. 
 
Transfer between reserves for             -          -           -       (5.6)          - 
lapsed employee options 
 
Equity settled share based                -          -           -         0.7          - 
payments 
 
At 30 June 2020                       133.4      790.2     (453.0)         1.1      (0.8) 
 
 
 
(Unaudited)                            Accumulated  Attributable Non-controlling Total 
                                       losses       to the       interest        equity 
                                                    parent 
US$ million 
 
12 month Period ended 20 June 2020: 
 
At 1 July 2019                         (255.6)      311.7        14.4            326.1 
 
Loss for the Year                      (190.0)      (190.0)      (33.0)          (223.0) 
 
Other comprehensive expense            -            (91.5)       (0.6)           (92.1) 
 
Transfer between reserves - Williamson (0.4)        (0.4)        0.4             - 
non-controlling interest. 
 
Transfer between reserves for lapsed   5.6          -            -               - 
employee options 
 
Equity settled share based payments    -            0.7          -               0.7 
 
At 30 June 2020                        (440.4)      30.5         (18.8)          11.7 
 
NOTES TO THE CONDENSED CONSOLIDATED PRELIMINARY FINANCIAL STATEMENTS 
 
FOR THE YEAR 30 JUNE 2021 
 
1.     GENERAL INFORMATION 
 
Petra Diamonds Limited (the "Company"), a limited liability company listed on 
the Main Market of the London Stock Exchange, is registered in Bermuda with its 
Group management office domiciled in the United Kingdom. The Consolidated 
Preliminary Financial Statements of the Company for the year ended 30 June 2021 
comprise the Company and its subsidiaries, joint operations and associates 
(together referred to as the "Group"). 
 
2.     ACCOUNTING POLICIES 
 
This unaudited preliminary report does not include all the notes of the type 
normally included in an annual financial report. This condensed report is to be 
read in conjunction with the Annual Report for the year ended 30 June 2020, and 
any public announcements made by the Group during the reporting period. The 
annual financial report for the year ended 30 June 2020 was prepared in 
accordance with International Financial Reporting Standards as adopted by the 
European Union ("IFRS's") and the accounting policies applied in this condensed 
preliminary report are consistent with the polices applied in the annual 
financial report for the year ended 30 June 2020 unless otherwise noted. The 
preliminary report has been prepared in accordance with International Financial 
Reporting Standards as adopted by the European Union. 
 
Accounting policy for Non-current assets held for sale and discontinued 
operations 
 
Where an operation within the Group is separately identified or forms part of a 
separate reporting structure, the Group will classify the asset as held for 
sale, in accordance with IFRS 5, if management has committed to a plan to sell, 
the operation is available for sale, an active search for a buyer is in place, 
or if any transaction is highly probable within 12 months of classifying as 
held for sale. The Williamson operation met the criteria mentioned above and as 
such has been classified as held for sale as at 30 June 2021. The assets held 
for sale are measured at the lower of their carrying amount and fair value less 
costs to sell. An impairment loss is recognised for any initial or subsequent 
write-down of the asset to fair value less costs to sell. A gain is recognised 
for any subsequent increases in fair value less costs to sell of an asset but 
not in excess of any cumulative impairment loss previously recognised. A gain 
or loss not previously recognised by the date of the sale of the non-current 
asset is recognised at the date of derecognition. Non-current assets classified 
as held for sale and the assets of an operation classified as held for sale are 
presented separately from the other assets in the statement of financial 
position. The liabilities of an identified operation classified as held for 
sale are presented separately from other liabilities in the statement of 
financial position. 
 
A discontinued operation is a component of the entity that has been disposed of 
or is classified as held for sale and that represents a separate major line of 
business or geographical area of operations, is part of a single co-ordinated 
plan to dispose of such a line of business or area of operations, or is a 
subsidiary acquired exclusively with a view to resell. The results of 
discontinued operations are presented separately in the statement of profit or 
loss. 
 
Unrealised foreign exchange gains and losses on historic retranslation of the 
subsidiaries results into US Dollars are recycled to the consolidated income 
statement upon completion of the disposal. The Group designates the results of 
discontinued activities, including those of disposed subsidiaries, separately 
in accordance with IFRS and reclassifies the results of the operation in the 
comparative period from continuing to discontinued operations. 
 
Debt for Equity conversion 
 
When the Group issues equity to settle outstanding debt, the value attributed 
to the ordinary shares issued is based on the fair value of the equity at the 
date of settlement to extinguish the debt. The fair value is derived by 
reference to the closing share price at the date of the conversion, it is 
considered to be a Level 1 fair value measurement. Costs identified as being 
directly associated with the debt for equity conversion are taken directly to 
share premium. 
 
Accounting policy for substantial modification of financial liabilities 
 
When the Group's borrowings are refinanced, and the refinancing is considered 
to be a substantial modification, the difference between the carrying amount of 
a financial liability (or part of a financial liability) extinguished or 
transferred to another party and the consideration paid, including any non-cash 
assets transferred or liabilities assumed, is recognised as a charge in the 
income statement. 
 
Basis of preparation including going concern 
 
GOING CONCERN 
 
Despite facing many challenges during FY 2021, improvements in market 
conditions and the easing of certain COVID-19 restrictions resulted in an 
increase in demand for rough diamonds, specifically during H2. This allowed for 
a higher volume of diamond sales to be generated by the Group, which further 
benefitted from a ca. 9% increase in diamond prices on a like-for-like basis 
when compared to FY 2020. In addition, the Company recovered and sold a number 
of Exceptional Stones during FY 2021 from Cullinan, yielding a total of US$62.0 
million in sales revenues. Post Year-end, another three Exceptional Stones were 
sold, being a 39.3ct blue diamond yielding US$40.18 million in July 2021, and a 
342.9ct white diamond and an 18.3ct blue diamond which collectively sold for 
US$13.5 million, while the Company retained a fifty percent interest in the 
profits, after costs, of both these stones. 
 
These factors, coupled with the successful completion of the Capital 
Restructuring, resulted in solid progress towards stabilising the Group's 
balance sheet and strengthening cash reserves to the date of this report. 
 
The Group's liquidity outlook over the 18-month period to December 2022 remains 
strong, even when applying sensitivities to the base case forecast. However, 
since covenants were set tightly in the base case at the time of the 
Restructuring, the debt service cover ratio ("DSCR") covenant, which does not 
factor in available liquidity nor consider leverage levels, remains sensitive 
to trading conditions during this period. Under certain stressed-case 
scenarios, projections indicate that the DSCR covenant may be breached; 
however, the Company is forecast to have adequate liquidity to fully pay down 
the drawn facilities prior to any potential breach occurring and retain 
adequate liquidity and is, therefore, not reliant on the facilities. The 
Company has also commenced with steps towards renegotiating available banking 
facilities and associated covenants to address the risk of a breach occurring. 
 The Board considers that the going concern basis in the preparation of the 
financial statements is appropriate and that there are no material 
uncertainties that would cast doubt on that basis of preparation. 
 
Capital Restructuring 
 
The Restructuring completed in March 2021 and significantly reduced the 
Company's gross debt from US$817.5 million directly before the Restructuring to 
US$450.1 million thereafter, with some US$10.3 million (ZAR160 million) 
remaining undrawn and available to the Group. 
 
Loan Notes reduced from US$713.7 million (US$650 million capital plus accrued 
interest of ca. US$63.7 million to date of settlement) to US$336.7 million, 
while debt owed under the Group's banking facilities saw an additional US$10.3 
million (ZAR160 million) revolving credit facility being made available to the 
Group, increasing these facilities to ZAR560 million, while the previous ZAR500 
million working capital facility and the ZAR683 million BEE guarantee 
facilities were refinanced and replaced by a ZAR1,200 billion amortising Term 
Loan. 
 
South African Operations 
 
Cullinan performed well during FY 2021, delivering record throughput supported 
by Project 2022 initiatives. It is expected that Cullinan will continue to 
perform at these levels in future. Finsch was impacted by unexpected levels of 
waste ingress, reducing both throughput and grades recovered at the mine. The 
longer-term impact of the waste ingress has been assessed through geological 
simulations, with results informing revised LOM planning models, as well as 
resultant cashflow projections. Short term disruptions were also experienced 
after unusually heavy rainfalls hampered operations at both Finsch and 
Koffiefontein during Q3 FY 2021. 
 
COVID-19 
 
Some uncertainty still exists around the ongoing impact of COVID-19 on the 
Group. South Africa is  currently experiencing a third wave of infections and 
the disruption to Petra's operations mainly concerns the necessary quarantining 
of confirmed or suspected cases amongst our workforce. However, the Company has 
the systems and processes in place to manage this without materially impacting 
production. Petra's focus now is on assisting the Government with its 
vaccination drive and the Company has vaccination stations and campaigns to 
encourage their uptake available at, or near to, each of our operations. 
 
The Group continues to sell its product through a dual tender system - first 
via the mandatory tender held in South Africa, with the bulk of the goods then 
exported to be sold in Antwerp. This approach ensures maximum exposure to 
potential bidders and, in turn, stronger competition and improved pricing. 
Further waves of outbreak and repeat restrictions on international travel may 
negatively impact the Group's short and medium-term liquidity profile due to 
the potential impact on production, ability to hold tenders and/or demand for 
rough diamonds and, consequently, diamond prices. 
 
Williamson mine, Tanzania 
 
The Board took the decision to dispose of the Williamson operation as at 30 
June 2021. The Williamson mine remained on care and maintenance; however, the 
Company is currently taking steps towards the recommencement of production 
given improving market conditions over the last number of months. The mine's 
own liquidity position, bolstered by US$10 million in VAT refunds during Q4 FY 
2021, coupled with support from the local mining contractor in the form of 
deferred payment terms, should see it reach commercial production levels during 
H1 FY 2022, with first sale of goods projected to be in Q2 FY 2022, with 
working capital funding from Petra limited to US$6 million during this start-up 
period. 
 
In addition, the Group remains in discussions with the Government of Tanzania 
("GoT") around various issues including, inter alia, the sharing of economic 
benefit, the recoverability of VAT receivables, and the potential release of 
the blocked diamond parcel. Williamson's liquidity position is reliant on its 
ability to generate cash through operations; and/or its ability to reach 
agreement with the GoT allowing it to sell the blocked diamond parcel and 
around potential recoupment of the balance of VAT receivables; and/or its 
ability to procure funding via borrowings from local financial institutions. 
 
Notwithstanding receiving approval from the GoT to proceed with arranging a 
US$25 million working capital facility from a local Tanzanian bank, while 
pledging its own assets as security, the mine has not yet been able to secure 
such funding. Earlier discussions with a local bank for a possible working 
capital facility were not successful given the mine is still in care and 
maintenance. The Tanzanian banks suggested that they may consider advancing a 
facility post restart of operations, although this remains uncertain. Under the 
terms of the in-principle agreements with the South African Lender Group, any 
additional funding by Petra would require its approval and if not provided may 
result in Williamson's insolvent liquidation. 
 
Forecast liquidity and covenants 
 
The Board has reviewed the Group's forecasts and sensitivities for the 18 
months to December 2022, including both forecast liquidity and covenants. 
Careful consideration was given to potential risks to the forecasts under the 
review period. The Board carefully considered risks associated with COVID-19 
which were considered to focus primarily on the potential for further 
production disruption, deferral of tenders due to travel restrictions and 
adverse impacts on diamond pricing. 
 
In light of both normal trading risks and elevated risks associated with the 
potential impact of the COVID-19 pandemic, the following have been key 
considerations for the Board in assessing the Group's ability to operate as a 
going concern at the date of this report: 
 
·      an unforeseen disruption to operations at its South African mines due to 
either COVID-19 restrictions or otherwise, including adverse weather 
conditions; 
 
·      a sustained 5% decrease in forecast rough diamond prices throughout the 
forecast period; 
 
·      an unforeseen deferral of a rough diamond tender, due to COVID-19 
restrictions, coupled with a significant price decline at an assumed subsequent 
private sale (in line with a similar process followed in FY 2020); and 
 
·      an increase in forecast operating cost. 
 
Under the base case, the forecasts indicate that the Company will be able to 
operate within the covenants set out in the financing agreements and maintain 
sufficient liquidity. 
 
However, as detailed above, the first lien covenants were set with limited 
headroom to the Company's base case. As such, results of the stress testing 
indicate that in the event of a combination of all tested scenarios, possible 
covenant breaches associated with the South African banking facilities may 
occur at June 2022, while a breach is also projected in December 2022 on an 
individual stress test basis. At the time of any covenant breach in June 2022 
and December 2022 under such scenarios, projected cash balances exceed 
outstanding debt under these facilities, which would allow the Group to fully 
pay down the drawn facilities prior to the breach occurring and maintain 
adequate liquidity. The forecasts indicate that under the sensitivity 
scenarios, the Group is not reliant on the facilities. 
 
Conclusion 
 
The Board is of the view that the longer-term fundamentals of the diamond 
market remain sound and that the Group will continue to benefit from Project 
2022 (which includes increased production and reduced spend) throughout the 
review period and beyond. 
 
Based on its assessment of the forecasts, principal risks and uncertainties and 
mitigating actions considered available to the Group in the event of downside 
scenarios, the Board confirms that it is satisfied that the Group will be able 
to continue to operate and meet its liabilities as they fall due over the 
review period. Accordingly, the Board has concluded that the going concern 
basis in the preparation of the financial statements is appropriate and that 
there are no material uncertainties that would cast doubt on that basis of 
preparation. 
 
New standards and interpretations applied 
 
The IASB has issued new standards, amendments and interpretations to existing 
with an effective date on or before 1 July 2020, these new standards are not 
considered to have a material impact on the Group during the Year under review. 
 
New standards and interpretations not yet effective 
 
Certain new standards, amendments and interpretations to existing standards 
have been published that are mandatory for the Group's accounting periods 
beginning after 1 July 2021 or later periods. The only standard which is 
anticipated to be significant or relevant to the Group is: 
 
Amendments to IAS 1: Classification of Liabilities as Current or Non-current 
 
Amendments to IAS 1, which are intended to clarify the requirements that an 
entity applies in determining whether a liability is classified as current or 
non-current. The amendments are intended to be narrow scope in nature and are 
meant to clarify the requirements in IAS 1 rather than modify the underlying 
principles. The amendments include clarifications relating to: 
 
·      how events after the end of the reporting period affect liability 
classification; 
 
·      what the rights of an entity must be in order to classify a liability as 
non-current; 
 
·      how an entity assesses compliance with conditions of a liability (e.g. 
bank covenants); and 
 
·      how conversion features in liabilities affect their classification. 
 
The amendments were originally effective for periods beginning on or after 1 
January 2022 which was deferred to 1 January 2023 by the IASB in July 2020. 
 
Significant assumptions and judgements: 
 
The preparation of the condensed consolidated preliminary financial statements 
requires management to make estimates and judgements and form assumptions that 
affect the reported amounts of the assets and liabilities, reported revenue and 
costs during the periods presented therein, and the disclosure of contingent 
liabilities at the date of the preliminary financial statements. Estimates and 
judgements are continually evaluated and based on management's historical 
experience and other factors, including future expectations and events that are 
believed to be reasonable. The estimates and assumptions that have a 
significant risk of causing a material adjustment to the financial results of 
the Group in future reporting periods are discussed below. 
 
Key estimates and judgements: 
 
Impairment reviews 
 
The Group prepares impairment models and assesses mining assets for impairment 
or reversals of previous impairments. While conducting an impairment test of 
its assets using recoverable values using the current life of mine plans, the 
Group exercised judgement in making assumptions about future rough diamond 
prices, foreign exchange rates, volumes of production, ore reserves and 
resources included in the current life of mine plans, future development and 
production costs and factors such as inflation and discount rates. Changes in 
estimates used can result in significant changes to the 'Consolidated Income 
Statement' and 'Statement of Financial Position'. 
 
Cullinan, Finsch and Koffiefontein 
 
The impairment tests for Cullinan, Finsch and Koffiefontein resulted in an 
impairment charge of US$17.3 million (30 June 2020: US$50.9 million) to be 
recognised, on a carrying value of the Group's property, plant and equipment of 
US$711.8 million (30 June 2020: US$844.0 million). The impairment was directly 
attributable to the Finsch amounting US$15.5 million (30 June2020: US$11.6 
million) and Koffiefontein amounting US$2.2 million (30 June2020: US$11.7 
million) related to property, plant and equipment of US$213.9 million (30 June 
2020: US$17.4 million). For further details of the inputs, assumptions and 
sensitivities in the impairment model, refer to note 16. 
 
Recoverability of diamond parcel in Tanzania 
 
The Group holds diamond inventory valued at lower of cost and net realisable 
value of US$10.6 million (30 June 2020: US$9.2 million) in the Statement of 
Financial Position in respect of the Williamson mine's confiscated diamond 
parcel. During FY 2018, an investigation into the Tanzanian diamond sector by a 
parliamentary committee in Tanzania was undertaken to determine if diamond 
royalty payments were being understated. In connection with this, Petra 
announced on 11 September 2017 that a parcel of diamonds (71,654.45 carats) 
from the Williamson mine in Tanzania (owned 75% by Petra and 25% by the 
Government of the United Republic of Tanzania ("GoT")) had been blocked for 
export to Petra's marketing office in Antwerp. 
 
The assessment of the recoverability of the diamond parcel requires significant 
judgement. In making such a judgement, the Group considered their ongoing 
discussions with the GoT. The Group received confirmation from the GoT in FY 
2018 that they held the diamond parcel of 71,654.45 carats. The Group has 
received verbal re-confirmation during the Year in the course of the ongoing 
discussions held with the GoT. The Group has made an assessment of the internal 
process used for the sale and export of diamonds and has confirmed that in the 
event that the parcel is recovered, a sale would be possible to execute in full 
compliance with legislation in Tanzania and the Kimberley Process with certain 
rectification steps. The Group has obtained legal advice from the Group's 
in-country attorneys which supports management's position that the Group 
retains the legal right to the parcel. 
 
The Company is aware of media reports during the Year suggesting that the 
blocked parcel of 71,654 carats of diamonds from the Williamson mine in 
Tanzania has been nationalised by GoT. The Company remains in discussions 
discussions with the GoT on this matter. 
 
While a resolution has not yet been reached with regards to the blocked parcel, 
based on the above judgements and assessment thereof, management remain 
confident that the diamond parcel will be released by the GoT and will be 
available for future sale by the Williamson operation. The funds are expected 
to flow to the Williamson mine and to be used as part of its future working 
capital requirements. 
 
Recoverability of VAT in Tanzania 
 
The Group has VAT receivable of US$0.7 million (30 June 2020: US$10.3 million) 
in respect of the Williamson mine, all of which are past due and have therefore 
been classified, after after provision including amounts related to providing 
for a time-value of money inclusive of risk adjustments for various factors, as 
non-current given the potential delays in receipt. Williamson's non-current 
assets have been classified as assets held for sale in FY 2021. 
 
The VAT receivable can be split into three identifiable component time periods 
as set out below: 
 
US$ million                VAT Receivable            Provision       Carrying value 
 
Pre July 2017                         1.8                (1.3)                  0.5 
 
July 2017 to June                    26.9               (26.9)                    - 
2020 
 
Post June 2020                        0.8                (0.6)                  0.2 
 
                                     29.5               (28.8)                  0.7 
 
Pre July 2017 
 
Of the total VAT receivables, US$1.8 million (30 June 2020: US$13.0 million) 
relates to historic VAT pre July 2017. During the Year the Group received 
US$10.0 million in VAT refunds from the Tanzanian Revenue Authority in respect 
of the pre July 2017 period and US$1.2 million was disallowed subsequent to a 
VAT audit performed by the Tanzanian Revenue Authority. A provision of US$1.3 
million, given the uncertainty around the timing of receipts of the amount 
outstanding, has been provided for against the US$1.8 million receivable 
resulting in a carrying value of US$0.5 million. 
 
July 2017 to June 2020 
 
A further US$26.9.million (30 June 2020: US$26.9 million) of VAT is receivable 
which relates to VAT under the legislation, effective from July 2017 to 30 June 
2020. Under that legislation, costs incurred in the production and sale of raw 
minerals were not eligible for VAT and judgement was required in determining 
whether rough diamonds qualified as raw minerals. The assessment of the 
carrying value of the VAT receivable under the VAT legislation effective in 
this period required significant judgement considering ongoing discussions with 
the relevant authorities in Tanzania, legal advice, a formal rejection letter 
received from the Tanzania Revenue Authority ("TRA") and the Company's legal 
objection thereto and the wider operating environment. In addition to judgement 
regarding the eligibility for VAT, judgement was required over the timing of 
future payments. 
 
Management has considered the amendment to the VAT legislation for the period 
July 2017 to July 2020 and based on legal advice, considers that input VAT is 
valid and legally recoverable.. However, the TRA maintains that this amount is 
disputed and not recoverable. Given that there have been no favourable 
developments from the TRA, management has written down the full disputed 
balance of US$26.9 million as there has been no indication from the TRA that 
these amounts will be reimbursed, regardless of the June 2020 revision of 
legislation. 
 
As noted above, the VAT legislation was again revised to remove any reference 
to raw minerals with effect from 1 July 2020. The amendment to the legislation 
is to be applied prospectively and this therefore supports management's view 
that VAT related to periods post July 2020 are recoverable. 
 
Post June 2020 
 
An amount of US$0.8 million of VAT is receivable for the period subsequent to 1 
July 2020. The Group is considering various alternatives in pursuing payment in 
accordance with legislation. A provision of US$0.6 million, given the 
uncertainty around the timing of receipts of the amount outstanding, has been 
provided for against the US$0.8 million receivable resulting in a carrying 
value of US$0.2 million. 
 
While the remaining pre July 2017 and post 1 July 2020 VAT balance is 
considered receivable, significant uncertainty exists regarding the timing of 
receipt. A discount rate of 16.25% has been applied to the expected cash 
receipts inclusive of estimated country credit risk. A 1% increase in the 
discount rate would increase the provision by US$0.05 million and a one year 
delay would increase the provision by US$0.1 million. 
 
The total impairment on the total VAT balance is therefore US$28.7 million (FY 
2020: US$29.6 million) During the Year, a reversal of previous impairments of 
US$0.7 million (30 June 2020: US$nil) was recognised in loss on discontinued 
operations. 
 
BEE receivables - expected credit loss provision 
 
The Group has applied the expected credit loss impairment model to its BEE 
loans receivable. In determining the extent to which expected credit losses may 
apply, the Group assessed the probability of agreeing an offset of the gross 
receivable and payable balances and the future free cashflows to be generated 
by the mining operations, based on the current LOM plans. In assessing the 
future cashflows, the Group considered the diamond price outlook and the 
conclusion during the Year of an offset agreement. Based on the assessment, the 
analysis generated an expected net credit loss reversal totalling US$5.8 
million (30 June 2020: US$10.9 million expected credit loss provision), 
comprising of US$6.1 million provision reversal in respect of Cullinan and 
Finsch and US$0.3 million expected credit loss provision in respect of 
Koffiefontein (30 June 2020: US$10.9 million provision comprising US$6.1 
million in respect of Cullinan and Finsch and US$4.8 million in respect of 
Koffiefontein). 
 
Life of mine and ore reserves and resources 
 
There are numerous risks inherent in estimating ore reserves and resources and 
the associated current life of mine plan. The life of mine plan is the current 
approved management plan for ore extraction that considers specific resources 
and associated capital expenditure. The life of mine plan frequently includes 
less tonnes than the total reserves and resources that are set out in the 
Group's Resource Statement and which management may consider to be economically 
viable and capable of future extraction. 
 
Management must make a number of assumptions when making estimates of reserves 
and resources, including assumptions as to exchange rates, rough diamond and 
other commodity prices, extraction costs, recovery and production rates. Any 
such estimates and assumptions may change as new information becomes available. 
Changes in exchange rates, commodity prices, extraction costs, recovery and 
production rates may change the economic viability of ore reserves and 
resources and may ultimately result in the restatement of the ore reserves and 
resources and potential impairment to the carrying value of the mining assets 
and life of mine plans. 
 
The current life of mine plans are used to determine the ore tonnes and capital 
expenditure in the impairment tests.  Ore reserves and resources, both those 
included in the life of mine and certain additional tonnes which form part of 
reserves and resources considered to be sufficiently certain and economically 
viable, also impact the depreciation of mining assets depreciated on a unit of 
production basis. Ore reserves and resources, outside the current mine plan 
further impact the estimated date of decommissioning and rehabilitation. 
 
Restructuring 
 
Transaction costs associated with the restructuring exercise were apportioned 
to the listed debt, equity issued and ZAR banking facilities based on the value 
of each element at the date of restructuring. Refer to Note 8 (c) for further 
details. 
 
Williamson Diamond Mine (30 June 2021) 
 
The Group needs to apply judgment when determining whether an asset should be 
classified as held for sale. For this to be the case, the asset must be 
available for immediate sale in its present condition and its sale must be 
highly probable. The following factors are considered by management in 
determining whether a sale is highly probable: Management must be committed to 
a plan to sell the asset; an active programme to locate a buyer and complete 
the plan must have been initiated; the asset must be actively marketed for sale 
at a reasonable price and any transaction should be expected to be completed 
within 12 months of classification of the asset as held for sale. Based on the 
above factors, management considered that the Williamson mine was an asset held 
for sale at 30 June 2021. Judgement is required when determining whether a 
component of an entity classifies as a discontinued operation. A component of 
the Group should be classified as a discontinued operation when it has been 
disposed of, or if it is classified as held for sale, and represents a separate 
major line of business or geographical area of operations, is part of a single 
co-ordinated plan to dispose of a separate major line of business or 
geographical area of operations, or is a subsidiary acquired exclusively with a 
view to resale. Judgement is required when determining whether the component 
represents a separate major line of business or geographical area of 
operations. This was applied to the classification of the Williamson mine as a 
discontinued operation. The Williamson mine is considered a major geographical 
area of operations which has been reported as a separate segment in the past, 
and as such we have determined the classification of a discontinued operation 
to be appropriate. In terms of the measurement requirements of IFRS 5, once 
classified as held for sale, the assets are required to be measured at the 
lower of their carrying amount and fair value less costs to sell.  Judgment is 
required in order to determine the fair value of the disposal group.  In 
determining the fair value used to calculate the appropriate write down, 
management took into consideration, current discussions with vendors, the 
latest LOM plan assessment and the best available information at the present 
time. Refer to note 17 for further details. 
 
Taxation 
 
The Group operates in South Africa and Tanzania, and accordingly it is subject 
to, and pays annual income taxes under the various income tax regimes in the 
countries in which it operates. From time to time the Group is subject to a 
review of its income tax filings and in connection with such reviews, disputes 
can arise with the taxing authorities over the interpretation or application of 
certain rules to the Group's business conducted within the country involved. 
Management evaluates each of the assessments and recognises a provision based 
on its best estimate of the ultimate resolution of the assessment, through 
either negotiation or through a legal process. 
 
Other key estimates and judgements 
 
In addition to the key estimates and judgements disclosed above, the following 
estimates and judgements have not significantly changed from those disclosed in 
the FY 2020 Annual Report and will be discussed in further detail in the FY 
2021 Annual Report: 
 
-     Provision for rehabilitation 
 
-     Inventory and inventory stockpile 
 
-     Depreciation 
 
-     Pension and post-retirement medical fund schemes 
 
-     Net investments in foreign operations 
 
3.     DIVIDS 
 
No dividends have been declared in respect of the current Period under review 
(30 June 2020: US$nil). 
 
4.    SEGMENTAL INFORMATION 
 
Segment information is presented in respect of the Group's operating and 
geographical segments: 
 
Mining - the extraction and sale of rough diamonds from mining operations in 
South Africa and Tanzania. As at 30 June 2021, the Tanzania segment constitutes 
a discontinued operation and is classified as held for sale per IFRS 5. 
 
Exploration - exploration activities in Botswana (The exploration assets in 
Botswana were disposed of via the sale of the Group's interest in Sekaka 
Diamonds Exploration (Pty) Ltd). 
 
Corporate - administrative activities in the United Kingdom. 
 
Beneficiation - beneficiation activities in South Africa. 
 
Segments are based on the Group's management and internal reporting structure. 
Management reviews the Group's performance by reviewing the results of the 
mining activities in South Africa and Tanzania, reviewing the results of 
exploration activities in Botswana and reviewing the corporate administration 
expenses in the United Kingdom. Each segment derives, or aims to derive, its 
revenue from diamond mining and diamond sales, except for the corporate and 
administration cost centre. 
 
Segment results, assets and liabilities include items directly attributable to 
a segment, as well as those that can be allocated on a reasonable basis. 
Segment results are calculated after charging direct mining costs, depreciation 
and other income and expenses. Unallocated items comprise mainly 
interest-earning assets and revenue, interest-bearing borrowings and expenses 
and corporate assets and expenses. Segment capital expenditure is the total 
cost incurred during the year to acquire segment assets that are expected to be 
used for more than one period. Eliminations comprise transactions between Group 
companies that are cancelled on consolidation. The results are not materially 
affected by seasonal variations. Revenues are generated from tenders held in 
South Africa and Antwerp for external customers from various countries, the 
ultimate customers of which are not known to the Group. 
 
4.            SEGMENTAL INFORMATION (continued) 
 
Operating segments               South Africa - Mining activities    Tanzania     Botswana 
                                                                      -Mining 
                                                                    activities 
 
                                 Cullinan    Finsch   Koffiefontein Williamson5 Exploration4 
US$ million 
 
                                      2021       2021          2021        2021         2021 
 
Revenue                              250.6      123.5          27.9           -            - 
 
Segment result¹                       76.8      (0.5)         (8.1)           -            - 
 
Impairment charge - operations           -     (15.1)         (2.2)           -            - 
 
Impairment charge - other                -          -             -           -            - 
receivables 
 
Impairment of BEE loans                             -             -           -            - 
receivable - expected credit             - 
loss release / (charge) 
 
Other direct income                    0.6        1.0           0.1           -            - 
 
Operating profit / (loss)²            77.4     (14.6)        (10.2)           -            - 
 
Gain on extinguishment of Notes 
and unamortised costs 
 
Profit on disposal of 
subsidiary 
 
Financial income 
 
Financial expense 
 
Income tax charge 
 
Loss on discontinued operation 
(net of tax)5 
 
Non-controlling interest 
 
Profit attributable to equity 
holders of the parent company 
 
Segment assets                       559.0      249.9           6.9        59.6            - 
 
Segment liabilities                  559.2      119.7          22.1        33.5            - 
 
Capital expenditure                   16.8        4.0           1.7         0.3            - 
 
 
 
Operating segments              United     South Africa 
                                Kingdom 
 
                                Corporate  Beneficiation3 Inter-segment Consolidated 
US$ million                     and 
                                treasury 
 
                                2021       2021           2021 
 
Revenue                         -          0.3            -             402.3 
 
Segment result¹                 (21.2)     (1.6)          (1.6)         43.8 
 
Impairment charge - operations  -          -              -             (17.3) 
 
Impairment charge - other       (0.4)      -              -             (0.4) 
receivables 
 
Impairment of BEE loans         5.8        -              -             5.8 
receivable - expected credit 
loss release / (charge) 
 
Other direct income             -          -              -             1.7 
 
Operating profit / (loss)²      (15.8)     (1.6)          (1.6)         33.6 
 
Gain on extinguishment of Notes                                         213.3 
and unamortised costs 
 
Profit on disposal of                                                   14.7 
subsidiary 
 
Financial income                                                        84.1 
 
Financial expense                                                       (74.0) 
 
Income tax charge                                                       (23.0) 
 
Loss on discontinued operation                                          (52.1) 
(net of tax)5 
 
Non-controlling interest                                                (9.5) 
 
Profit attributable to equity                                           187.1 
holders of the parent company 
 
Segment assets                  3,488.7    4.5            (3,290.0)     1,078.6 
 
Segment liabilities             2,134.7    5.5            (2,236.4)     638.3 
 
Capital expenditure             1.0        -              -             23.8 
 
¹ Total depreciation of US$75.9 million included in the segmental result 
comprises depreciation incurred at Cullinan of US$52.2 million, Finsch of 
US$23.0 million, Koffiefontein US$ 0.1 million and Corporate and treasury of 
US$0.6 million. 
 
² Operating profit is equivalent to revenue of US$402.3 million less total 
costs of US$368.7 million as disclosed in the Consolidated Income Statement. 
 
3 The beneficiation segment represents Tarorite, a cutting and polishing 
business in South Africa, which on occasion cuts and polishes select rough 
diamonds. 
 
4 The operating results in respect of Botswana have been reflected in note 17. 
In FY 2021, Petra sold its exploration assets in Botswana to Botswana Diamonds 
PLC via the sale of its interest in Sekaka Diamonds Exploration (Pty) Ltd. 
 
5 The operating results in respect of Williamson have been reflected within 
loss on discontinued operation and the assets and liabilities classified as 
held for sale (refer to note 17). 
 
4.            SEGMENTAL INFORMATION (continued) 
 
Operating segments               South Africa - Mining activities    Tanzania    Botswana 
                                                                      -Mining 
                                                                    activities 
 
                                 Cullinan    Finsch   Koffiefontein Williamson5 Exploration 
US$ million 
 
                                      2020       2020          2020        2020        2020 
 
Revenue                              116.5      101.1          25.7           -           - 
 
Segment result¹                       21.6      (5.1)         (6.2)           -       (0.6) 
 
Impairment charge - operations      (11.6)     (27.6)        (11.7)           -           - 
 
Impairment charge - other                -          -             -           -           - 
receivables 
 
Impairment of BEE loans                  -          -             -           -           - 
receivable - expected credit 
loss provision 
 
Other direct income                      -        0.7           0.3           -           - 
 
Operating loss²                       10.0     (32.0)        (17.6)           -       (0.6) 
 
Financial income 
 
Financial expense 
 
Income tax credit 
 
Loss on discontinued operation 
(net of tax)4 
 
Non-controlling interest 
 
Loss attributable to equity 
holders of the parent company 
 
Segment assets                       494.0      303.5         135.9        94.5           - 
 
Segment liabilities                  566.7      176.6         266.2       297.8           - 
 
Capital expenditure                   16.4        8.4           3.8         8.0           - 
 
 
 
Operating segments              United     South Africa 
                                Kingdom 
 
                                Corporate  Beneficiation3 Inter-segment Consolidated 
US$ million                     and 
                                treasury 
 
                                2020       2020           2020          2020 
 
Revenue                         -          -              -             243.3 
 
Segment result¹                 (8.7)      (0.7)          (4.5)         (4.2) 
 
Impairment charge - operations  -          -              -             (50.9) 
 
Impairment charge - other       0.4        -              -             0.4 
receivables 
 
Impairment of BEE loans         (10.9)     -              -             (10.9) 
receivable - expected credit 
loss provision 
 
Other direct income             -          -              -             1.0 
 
Operating loss²                 (19.2)     (0.7)          (4.5)         (64.6) 
 
Financial income                                                        7.9 
 
Financial expense                                                       (160.8) 
 
Income tax credit                                                       52.5 
 
Loss on discontinued operation                                          (58.0) 
(net of tax)4 
 
Non-controlling interest                                                33.0 
 
Loss attributable to equity                                             (190.0) 
holders of the parent company 
 
Segment assets                  2,876.6    4.1            (2,865.9)     1,042.7 
 
Segment liabilities             2,018.9    4.8            (2,300.0)     1,031.0 
 
Capital expenditure             1.0        -              (1.2)         36.4 
 
¹ Total depreciation of US$69.9 million included in the segmental result 
comprises depreciation incurred at Finsch of US$25.8 million, Cullinan of 
US$40.4 million, Koffiefontein of US$2.5 million, , Exploration of US$0.1 
million and Corporate administration of US$0.8 million. 
 
² Operating loss is equivalent to revenue of US$243.3 million less total costs 
of US$307.9 million as disclosed in the Consolidated Income Statement. 
 
3 The beneficiation segment represents Tarorite, a cutting and polishing 
business in South Africa, which on occasion cuts and polishes select rough 
diamonds. 
 
4 The operating results in respect of Williamson have been reflected within 
loss on discontinued operation (refer to note 17). 
 
 
US$ million                                                      2021²           2020 
 
5.   CORPORATE EXPITURE 
 
Corporate expenditure includes: 
 
Depreciation of property, plant and equipment                      0.6            0.5 
 
Amortisation of right-of-use asset                                 0.3            0.3 
 
London Stock Exchange and other regulatory expenses                1.5            1.4 
 
Settlement costs and fees - human rights claims at                12.7              - 
Williamson¹ 
 
Share-based expense - Directors                                    0.5            0.7 
 
Other staff costs                                                  2.3            2.0 
 
Total staff costs                                                  2.8            2.7 
 
¹ The settlement costs for the human rights claims at Williamson comprise 
US$4.8 million for the part settlement of the claimant's legal costs and for 
distribution to the claimants and US$1.3 million to invest in programmes 
dedicated to providing long-term sustainable support to the communities living 
around the Williamson mine as a condition of the Settlement. The Company has 
incurred and provided for additional total costs of US$6.6 million relating to 
this matter, the bulk of which relate to legal, consultant, investigation and 
expert fees. 
 
² During the Year, the Group received payments from the South African 
Government under the temporary employee relief scheme ("TERS") of US$3.5 
million. Of the US$3.5 million TERS payment received, US$0.3 million relates to 
Corporate expenditure and US$3.2 million relates to Mining and processing 
costs. 
 
6.   FINANCING INCOME / (EXPENSE) 
 
US$ million 
                                                                  2021           2020 
 
Net unrealised foreign exchange gains1                            77.1              - 
 
Interest received on BEE loans and other receivables               5.4            6.7 
 
Interest received bank deposits                                    0.7            1.2 
 
Realised foreign exchange gains on the settlement of               0.9 
foreign loans and forward exchange contracts                                        - 
 
Financial income                                                  84.1            7.9 
 
Interest on senior secured second lien notes, bank              (51.5)         (52.4) 
loans and overdrafts 
 
Other debt finance costs, including BEE loan interest,           (8.5) 
facility fees and IFRS 16 charges                                              (13.4) 
 
Acceleration of unamortised Notes costs                          (2.7)              - 
 
Unwinding of present value adjustment for                        (4.3)          (4.6) 
rehabilitation costs 
 
Net unrealised foreign exchange losses1                              -         (82.1) 
 
Realised foreign exchange losses on the settlement of            (7.0) 
foreign loans and forward exchange contracts                                    (8.3) 
 
Financial expense                                               (74.0)        (160.8) 
 
 
 
Loss on substantial modification of Notes2                       (7.7)              - 
 
Gain on extinguishment of Notes - debt for equity                221.0              - 
conversion2 
 
Net gain on extinguishment of Notes                              213.3              - 
 
 
 
Net finance income / (expense)                                   223.4        (152.9) 
 
1 .The Group predominantly enters into hedge contracts where the risk being 
hedged is the volatility in the South African Rand, Pound Sterling and US 
Dollar exchange rates affecting the proceeds in South African Rand of the 
Group's US Dollar denominated diamond tenders. The fair value of the Group's 
hedges as at the end of the Year are based on Level 2 mark-to-market valuations 
performed by the counterparty financial institutions. The contracts are all 
short dated in nature and mature within the next 12 months. A significant 
strengthening of the South African Rand against the US Dollar from ZAR17.32 (30 
June 2020) to ZAR14.27 (30 June 2021) resulted in an unrealised gain of US$77.1 
million (30 June 2020: US$82.1 million loss) comprising foreign exchange 
contracts held at Year end of US$12.4 million (30 June 2020: US$12.8 million 
loss) and inter-group foreign denominated loans of US$64.7 million (30 June 
2020: US$68.7 million loss); and a net realised foreign exchange loss of US$6.1 
million (30 June 2020: US$8.3 million loss) in respect of foreign exchange 
contracts closed during the Year is included in the net finance and expense 
amount. 
 
2 The loss on substantial modification and gain on extinguishment of Notes in 
the Year arose from the Restructuring completed by the Group on 10 March 2021. 
Refer to note 8 for further detail. 
 
7.     PROPERTY, PLANT AND EQUIPMENT 
 
The net movement in property, plant and equipment for the Year is an increase 
of US$21.0 million (30 June 2020: US$292.0 million decrease). This is primarily 
as a result of: 
 
-      the movement in the US$/ZAR foreign exchange rate resulting in a foreign 
exchange increase on Rand based assets of US$136.8 million (30 June 2020: 
US$163.8 million decrease); 
 
-      an increase in property, plant and equipment from capital expenditure of 
US$23.8 million (30 June 2020: US$36.4 million), which includes US$0.3 million 
(30 June 2020: US$8.0 million) additions attributable to Williamson; and 
 
-      an increase in the rehabilitation asset of US$6.4 million (30 June 2020: 
US$0.1 million) due to Cullinan's estimated period to decommissioning reducing 
from 45 years to 25 years reflecting updated scoping studies for future 
development outside of its current approved LOM; 
 
offset by: 
 
-      depreciation of US$75.9 million (30 June 2020: US$78.3 million); 
 
-      the impairment of the Finsch and Koffiefontein assets of US$17.3 million 
(30 June 2020: US$50.9 million); 
 
-      the impairment of the Williamson assets of US$21.4 million (30 June 
2020: US$34.6 million); 
 
-      the transfer of the remaining Williamson assets to non-current assets 
held for sale of US$31.3 million (30 June 2020: US$nil); and 
 
-      assets of US$0.1 million (30 June 2020: US$0.7 million) disposed of 
during the Year. 
 
8. Restructuring of the US$650 million Loan Notes 
 
On 10 March 2021, the Company announced it had completed the implementation of 
the debt Restructuring project with the Noteholders and the South African 
Lender Group. The key features of the Restructuring of the US$650 million Notes 
and the Senior secured lender debt facilities of ZAR1.6 billion are as follows: 
 
-      conversion of Notes debt valued at US$415.0 million into equity, which 
resulted in the Noteholder group holding 91% of the enlarged share capital of 
the Company (refer (a) below); 
 
-      the remainder of the Notes exchanged for the issue of US$295.0 million 
new Notes and the contribution by holders of the existing Notes of US$30.0 
million in new money, each to take the form of New Notes (refer (a) below); and 
 
-      restructuring of the first lien facilities to provide for a Term Loan of 
ZAR1.2 billion and a Revolving Credit Facility ("RCF") of ZAR560 million 
provided by the South African Lender Group (refer (b) below). 
 
a) Debt for Equity conversion and the issue of New Notes 
 
i)  Debt for Equity swap 
 
The Company completed a debt for equity conversion consisting of the partial 
repayment of the US$650 million Loan Notes by issuing 8,844,657,929 new 
Ordinary Shares with a nominal value of 0.001 pence per share in the Company to 
the existing Noteholders. The fair value of the shares at the date of the 
conversion was 1.58 pence per share, giving a total consideration of U$194.0 
million. As the fair value was derived by reference to the closing share price 
at the date of the conversion, it is considered to be a Level 1 fair value 
measurement. The carrying value of the liability at the date of the conversion 
was US$415.0 million, after capitalisation of the May 2020 and November 2020 
coupons and adjusting for the issue of new Notes. The resulting gain, before 
restructuring costs, of US$221.0 million has been recognised in the Income 
Statement as part of the gain on extinguishment of the Notes. Restructuring 
costs identified as being directly associated with the debt for equity 
conversion, of US$12.4 million have been taken directly to share premium. The 
Debt for Equity Conversion resulted in the Noteholders holding 91% of the 
enlarged share capital of the Company. 
 
US$ million                                                                     2021 
 
Ordinary shares issued - nominal value per share                                12.3 
 
Share premium                                                                  169.3 
 
Share premium on debt for equity conversion                                    181.6 
 
Costs directly associated with issue of shares                                (12.3) 
 
Attributable to parent                                                         181.6 
 
Gain on extinguishment of Notes - debt for equity conversion                   221.0 
 
ii) Issue of New Notes 
 
        The New Notes of US$336.7 million were issued and allocated as follows: 
 
·  US$30.0 million allocated only to those Noteholders that subscribed, and 
funded that subscription, to the New Money, pro rata to their New Money 
contribution (the "New Money Noteholders"); 
 
·  US$150.0 million allocated only to those New Money Noteholders, pro rata to 
each holder's contribution to the New Money; 
 
·  US$145.0 million allocated to all Noteholders (including the New Money 
Noteholders), pro rata to their holdings of existing Notes at the close of the 
Restructuring; and 
 
·  a further amount of New Notes as consideration to certain Noteholders, in 
remuneration for the commercial risks and other commercial considerations borne 
by those Noteholders whilst restricted for the purposes of negotiations with 
other stakeholders and work performed in connection with the Restructuring. The 
quantum of New Notes issued for this purpose was US$11.7 million, which has 
been capitalised as part of the Notes liability and will be amortised over the 
term of the Notes. 
 
iii) Substantial modification 
 
The Group performed an assessment under its accounting policies and the 
requirements of IFRS 9 as to whether the restructuring of the terms of the Loan 
Notes represented a substantial modification. As the net present value of the 
cash flows under the original terms and the modified terms was greater than 10% 
different, the modification was accounted for as a substantial modification. 
 
As a result, on completion of the Restructuring, the carrying value of the Loan 
Notes of US$299.0 million was de-recognised and the amended new Notes with a 
nominal value of US306.7 million were recognised on the balance sheet at the 
date of modification. The loss arising on substantial modification of the Loan 
Notes of US$7.7 million has been recognised in the Income Statement as part of 
the gain on extinguishment of the Notes. The acceleration of unamortised costs 
associated with the substantial modification were expensed and included within 
net finance income (refer to note 6). 
 
US$ million                                                                     2021 
 
New Money Noteholders                                                          150.0 
 
New Notes allocated to all Noteholders                                         145.0 
 
New Notes for consideration of costs                                            11.7 
 
New Notes nominal value                                                        306.7 
 
Carrying value of Notes derecognized                                           299.0 
 
New Notes nominal value                                                      (306.7) 
 
Loss on substantial modification of Notes                                      (7.7) 
 
b) First lien facilities 
 
The previous facilities held with the South African Lender Group, included the 
ZAR500.0 million working capital facility (the "WCF"), the ZAR400.0 million 
RCF, the financing arrangements in respect of the Group's BEE partners (the 
"BEE Facilities") of ZAR683.1 million and the Group's general banking 
facilities were restructured through the extinguishment of the existing 
facilities and the replacement of such facilities with a new Term Loan and RCF, 
as part of the Restructuring. 
 
A new Term Loan was made available to the Group for a principal amount of 
ZAR1.2 billion, in order to refinance the previous drawn ZAR500.0 million WCF 
and the outstanding principal amounts of the BEE Facilities (ZAR683.1 million). 
Transaction costs of ZAR17.4 million (US$1.7 million) and cash transaction 
costs of US$0.7 million directly associated with the Term loan were capitalised 
to the liability to be amortised over the period of the loan. The Term Loan is 
fully drawn. 
 
A new RCF was made available comprising a rollover of the previous ZAR400.0 
million RCF but increased by a further ZAR160.0 million. An amount of ZAR400.0 
million remains drawn at Year end under the RCF with the RCF reducing at Year 
end to ZAR509.6 million in line with the amortisation profile, with ZAR109.6 
million still available for drawdown. For the terms of the new First lien 
facilities refer to note 10. 
 
c) Transaction costs 
 
A total of US$33.7 million (FY2020: US$3.8 million included under prepayments) 
were incurred during the Year for the Restructuring. The transaction costs have 
been apportioned to Equity, the Notes and bank facilities based on each 
components contribution to the total Restructuring. Cash costs incurred in the 
Year amounted to US$29.9 million (FY 2020: US$3.8 million included under 
prepayments). A summary of the cash transaction costs are presented in the 
table below: 
 
US$ million 
 
Transaction costs attributable to equity 
 
Transaction costs attributable to Notes 
 
Transaction costs attributable to First lien facilities 
 
 
d) Taxation 
 
The current and deferred taxation consequences of the Restructuring have been 
considered and based on adviser opinions received during the Restructuring 
project, Management are of the opinion there are no material tax events 
anticipated. 
 
9.     SHARES ISSUED 
 
As part of the Restructuring and subsequent to the approval by shareholders at 
a special general meeting held on 13 January 2021, the Company allotted 
8,844,657,929 Ordinary Shares to the Noteholders valued at US$194.0 million 
(comprising Ordinary shares valued at US$12.3 million and share premium of 
US$181.7 million before capitalised costs), based on the share price at 9 March 
2021 (the date upon which all implementation steps for the Debt Restructuring 
were met). The allotment was pursuant to the Debt for Equity Conversion, 
announced on 22 December 2020, which resulted in the Noteholders holding 91% of 
the enlarged share capital of the Company in the following proportions: 
 
-      56.0% of the enlarged share capital was issued to all Noteholders, 
including the New Money Noteholders, pro rata to their holdings of existing 
Notes at the close of the Restructuring (to the extent any Noteholder did not 
take up their equity entitlement, such entitlement was allocated to the 
remaining Noteholders who did not opt out of their equity entitlement, on a pro 
rata basis); and 
 
-      35.0% of the enlarged share capital was issued to the New Money 
Noteholders only, pro rata to their contribution of the New Money (to the 
extent any such Noteholders did not take up their equity entitlement, such 
entitlement was allocated to the remaining Noteholders who contributed to the 
New Money and who did not opt out of their equity entitlements, on a pro rata 
basis). 
 
As a consequence of the Debt for Equity Conversion, 9% of the Company's 
enlarged share capital remains with the previous shareholders (subject to 
dilution as a result of standard management equity incentive arrangements). The 
costs associated with the allotment of the new ordinary shares of US$12.3 
million were capitalised against share premium. For additional information 
regarding the Restructuring refer to note 8. 
 
Allotments during FY 2020 were in respect of the award of 94,858 Ordinary 
Shares to Mr Dippenaar and Mr Davidson (previous Group Executive Directors) 
granted under the 2012 Performance Share Plan in receipt of performance 
measured over the period 1 July 2016 to 30 June 2019. 
 
10.   LOANS AND BORROWINGS 
 
US$ million                                                      2021              2020 
 
Non-current liabilities 
 
Loans and borrowings - Senior secured second lien               327.3                 - 
notes 
 
Loans and borrowings - Senior secured lender debt                72.7                 - 
facilities 
 
                                                                400.0                 - 
 
Current liabilities 
 
Loans and borrowings - BEE Partner debt facilities                  -              40.0 
 
Loans and borrowings - senior secured lender debt 
facilities                                                       30.3              52.1 
 
Loans and borrowings - senior secured second lien                   -             676.9 
notes¹ 
 
                                                                 30.3             769.0 
 
Total loans and borrowings - bank facilities                    430.3             769.0 
 
¹ Prior to the Debt Restructuring the Company had US$650 million Notes which 
had been issued by a wholly owned subsidiary, Petra Diamonds US$ Treasury Plc. 
In terms of the requirements of IFRS, the Notes were classified as a current 
liability as at 30 June 2020, as at that date the company did not have an 
unconditional right to defer settlement for at least 12 months.These Notes were 
restructured during the Year with the existing Notes being extinguished through 
a debt for equity conversion (US$415.0 million), the issue of new Notes via a 
cash injection of US$30.0 million and additional new Notes issued for US$306.7 
million (including costs of US$11.7 million). Refer to note 8 for further 
detail. 
 
a) US$336.7 million Senior Secured Second Lien Notes 
 
A wholly owned subsidiary of the Company, Petra Diamonds US$ Treasury Plc, 
issued debt securities consisting of US$336.7 million five-year senior secured 
second lien loan notes ("Notes"), with a maturity date of 8 March 2026. The 
Notes are guaranteed by the Company and by the Group's material subsidiaries 
and are secured on a second lien basis on the assets of the Group's material 
subsidiaries. The Notes carry a coupon from: 
 
-      9 March 2021 to 31 December 2022 of 10.50% per annum, which is 
capitalised to the outstanding principal amount semi-annually in arrears on 31 
December and 30 June of each year; 
 
-      1 January 2023 to 30 June 2023 of 10.50% per annum on 37.7778% of the 
aggregate principal amount outstanding, which is capitalised to the outstanding 
principal amount semi-annually in arrears on 31 December and 30 June of each 
year and 9.75% per annum on 62.2222% of the aggregate principal amount 
outstanding which is payable in cash semi-annually in arrears on 31 December 
and 30 June of each year; 
 
-      1 July 2023 to 31 December 2025 of 9.75% per annum on the aggregate 
principal amount outstanding which is payable in cash semi-annually in arrears 
on 31 December and 30 June of each year; and 
 
-      1 January 2026 to 8 March 2026 (final coupon payment) of 9.75% per annum 
on the aggregate principal amount outstanding which is payable in cash 
 
The costs associated with issuing the Notes of US$20.7 million have been 
capitalised against the principal amount and US$19.4 million remains 
unamortised as at 30 June 2021. Interest of US$11.1 million has been accrued as 
at 30 June 2021. 
 
Further details about the Notes (including security) will be included in the 
Group's FY 2021 Annual Report. 
 
b) Senior Secured Lender Debt Facilities 
 
The Group's South African Lender Group (Absa Corporate and Investment Banking 
("Absa"), FirstRand Bank Limited (acting through its Rand Merchant Bank 
division) ("RMB"), and Nedbank Limited) and lending facilities are detailed in 
the table below. 
 
As part of the Restructuring, the existing banking facilities were amended on a 
first lien basis and on the following terms, the creation of a new Term Loan of 
ZAR1.2 billion (US$76.6 million) comprising ZAR500.0 million (US$35.0 million) 
under the existing WCF and ZAR683.1 (US$41.6 million) million relating to the 
BEE Partner debt facilities; and the rollover of the existing RCF increasing by 
ZAR160.0 million (US$11.2 million) to ZAR560 million (US$39.2 million). The 
revised terms and conditions are set out in the table below. The costs 
associated with restructuring of the banking facilities of US$1.7 million and 
US$0.7 million cash transaction costs allocated based on the total 
Restructuring costs have been capitalised against the principal amount. 
 
The Group performed an assessment under its accounting policies and the 
requirements of IFRS 9 as to whether the restructuring of the Senior Secured 
Lender Facilities represented a substantial modification. As the net present 
value of the cashflows under the original terms and the modified terms was less 
than 10% different, the modification did not represent a substantial 
modification. 
 
The new terms under the Term loan are: 
 
-      maturity date 8 March 2024; 
 
-      scheduled amortisation of 9% of principal per quarter (starting in June 
2021) with a final 10% of principal repayment at maturity, 
 
-      1.3x debt service cover ratio tested semi-annually on a rolling 12-month 
basis, which if breached will give rise to an event of default under the new 
bank facilities; and 
 
-      interest rate of SA JIBAR + 5.25% per annum (with an upfront fee of 1% 
of the term loan amount capitalised). 
 
The revised terms under the RCF are: 
 
-      maturity date 8 March 2024; 
 
-      scheduled amortisation of 9% of principal per quarter (starting in June 
2021) with a final 10% of principal repayment at maturity; 
 
-      1.3x debt service cover ratio tested semi-annually on a rolling 12-month 
basis, which if breached will give rise to an event of default under the new 
bank facilities; and 
 
-      interest rate of SA JIBAR + 5.25% per annum (with an upfront fee of 1% 
of the RCF amount capitalised and a commitment fee based on undrawn balances). 
 
The Group's debt and hedging facilities are detailed in the table below: 
 
Senior Lender Debt Facilities                                    2021              2020 
 
                                                             Facility          Facility 
                                                               amount            amount 
 
ZAR Debt Facilities: 
 
ZAR Lenders RCF                                        ZAR560 million    ZAR400 million 
 
ZAR Lenders Term loan                                  ZAR1.2 billion            ZARnil 
 
ZAR Lenders WCF                                                ZARnil    ZAR500 million 
 
Absa/RMB - FX Hedging facilities                       ZAR150 million    ZAR300 million 
 
 
The terms and conditions of the Group's facilities will be detailed in the 
Group's FY 2021 Annual Report. 
 
The facilities are secured on the Group's interests in Cullinan, Finsch, and 
Koffiefontein. 
 
As at date of this report, the Term loan was fully drawn while the RCF had 
available capacity of ZAR109.6 million (US$7.7 million). 
 
Covenant ratios 
 
As part of the revised Term loan and RCF facilities entered into with the South 
African Lender Group, the Company is required: 
 
-      to maintain a 1.3x debt service cover ratio tested semi-annually on a 
rolling 12-month basis; and 
 
-      to maintain liquidity requirements being the aggregate of the undrawn 
amounts available under the RCF and consolidated cash and cash equivalents 
(excluding diamond debtors) not falling below ZAR200 million (US$14.0 million). 
 
Refer to the Financial Review for further commentary with regards to covenants. 
 
 c) BEE Partner debt facilities 
 
The BEE Partner debt facilities have been restructured and now form part of the 
new Term Loan (refer to (b) above). 
 
11.   COMMITMENTS 
 
As at 30 June 2021, the Company had committed to future capital expenditure 
totalling US$10.2 million (30 June 2020: US$4.4 million), mainly comprising 
Cullinan US$8.1 million (30 June 2020: US$2.0 million), Finsch US$1.5 million 
(30 June 2020: US$1.4 million), Koffiefontein US$0.6 million ( (30 June 2020: 
US$0.3 million) and Williamson US$nil (30 June 2020: US$0.7 million). 
 
12.   RELATED PARTY TRANSACTIONS 
 
The Group's related party BEE partner, Kago Diamonds (Pty) Ltd ("Kago 
Diamonds") and its gross interests in the mining operations of the Group are 
disclosed in the table below. 
 
Mine                                      Partner and respective Partner and respective 
                                                        interest               interest 
                                          as at 30 June 2021 (%) as at 30 June 2020 (%) 
 
Cullinan                                     Kago Diamonds (14%)    Kago Diamonds (14%) 
 
Finsch                                       Kago Diamonds (14%)    Kago Diamonds (14%) 
 
Koffiefontein                                Kago Diamonds (14%)    Kago Diamonds (14%) 
 
 
The Itumeleng Petra Diamonds Employee Trust ("IPDET") holds a 12% interest in 
each of the Group's South African operations, with Petra's commercial BEE 
Partners holding the remaining 14% interest through their respective 
shareholdings in Kago Diamonds, in which Petra has a 31.46% interest. The 
effective interest percentages attributable to the remaining operations for the 
Group's shareholders is 78.4%. 
 
The non-current loans receivable, non-current loans payable, finance income and 
finance expense due from and due to the related party BEE partners and other 
related parties are disclosed in the table below: 
 
US$ million                                             1 July 2020 -      1 July 2019 - 
                                                         30 June 2021       30 June 2020 
 
Non-current receivable 
 
Kago Diamonds1                                                   33.5               72.1 
 
                                                                 33.5               72.1 
 
Non-current payable 
 
Kago Diamonds                                                       -               58.5 
 
                                                                    -               58.5 
 
Current trade and other receivables 
 
KEM JV2                                                           9.7                8.0 
 
Impairment provision2                                           (8.4)              (6.9) 
 
                                                                  1.3                1.1 
 
Finance income 
 
Kago Diamonds                                                     3.7                5.1 
 
                                                                  3.7                5.1 
 
 
 
Finance expense 
 
Kago Diamonds                                                     3.8                6.4 
 
                                                                  3.8                6.4 
 
 
¹ The decrease in the Kago Diamonds receivable of US$38.6 million is mainly 
attributable to amounts advanced to Kago Diamonds during the Year totalling 
US$3.8 million (30 June 2020: US$7.7 million), a foreign exchange increase of 
US$15.4 million (30 June 2020: US$7.7 million decrease), the reversal of prior 
period expected credit loss provision of US$4.2 million (30 June 2020: US$5.4 
million impairment) and offset by the loan payable of US$62.1 million 
(including foreign exchange movements on the loan payable) by the Group to Kago 
against the Kago loan receivable. 
 
2 Included in current trade and other receivables are amounts advanced to KEM 
JV in respect of a working capital facility and equipment finance facility of 
US$nil (30 June 2020: US$nil) and the balance of the KEM JV purchase 
consideration of US$1.3 million (30 June 2020: US$1.1 million). During FY2021 
the Group received payments of US$nil (FY 2020 US$0.4 million) from the KEM JV 
as part settlement of the outstanding purchase consideration. The Group has 
applied the expected credit loss impairment model to the KEM JV receivables, 
taking into account various factors, and the expected credit loss was deemed to 
be US$8.4 million (30 June 2020: US$6.9 million). The increase in the expected 
credit loss is attributable to the movement in the foreign exchange rates 
during the Year. 
 
Kago Diamonds is one of the BEE partners which obtained bank financing from 
ABSA, RMB and Ninety-One (the "BEE Lenders") to acquire its interests in 
Cullinan and Finsch. During FY2020, the Group had provided a guarantee to the 
BEE Lenders for repayment of loans advanced to the Group's BEE Partners, 
however during FY2021 as part of the Debt Restructuring, the BEE Partner debt 
facilities were restructured and now form part of the Group's new Term Loan 
(refer to note 9 for further detail). 
 
Rental income receivable 
 
The Group received US$0.1 million (30 June 2020: US$0.1 million) from Alufer 
Mining Ltd. The Group has US$nil (30 June 2020: US$0.1 million) receivable from 
Alufer Mining Ltd. Mr Pryor is a director of Alufer Mining Ltd. 
 
13.   BEE LOANS RECEIVABLE AND PAYABLE 
 
US$ million                                             30 June 2021             30 June 
                                                                                    2020 
 
Non-current assets 
 
Loans and other receivables                                     46.6               137.0 
 
Non-current liabilities 
 
Trade and other payables                                           -               108.6 
 
 
BEE Loans Receivable 
 
The non-current BEE loans receivable represents those amounts receivable from 
the Group's BEE Partners (Kago Diamonds and the IPDET) in respect of advances 
historically provided to the Group's BEE Partners to enable them to discharge 
interest and capital commitments under the BEE Lender facilities, advances to 
the BEE Partners to enable trickle payment distributions to both Kago Diamonds 
shareholders and to the beneficiaries of the IPDET (Petra Directors and Senior 
Managers do not qualify as beneficiaries under the IPDET Trust Deed), and 
financing of their interests in the Koffiefontein mine. In addition, US$47.9 
million (30 June 2020: US$40.0 million) has been recorded as part of the gross 
receivable (before expected credit loss provisions) in respect of amounts to be 
reimbursed to the Group in respect of the guarantee under the BEE Lender 
facilities. Judgment was required in determining the extent to which 
reimbursement is applicable based on the terms of the agreements, South African 
legislation, future cashflow generation of the operations and discussions with 
the BEE partners. 
 
As a result of historical delays in the Cullinan plant ramp-up and the Finsch 
SLC ramp-up, the Group has historically and through the Period elected to 
advance the BEE Partners' funds using Group treasury to enable the BEE Partners 
to service their interest and capital commitments under the BEE Lender 
facilities (refer below). These BEE receivables, including interest raised, 
will be recoverable from the BEE Partners' share of future cashflows from the 
underlying mining operations. 
 
As part of the Debt Restructuring, Petra has assumed the BEE Lender facility 
obligations under the terms outlined in notes 9 and 10. 
 
For detail on expected credit loss provision and reversal associated with the 
BEE loans receivable refer to note 2. 
 
                                                        1 July 2020 -      1 July 2019 - 
US$ million                                              30 June 2021       30 June 2020 
 
As at 1 July                                                    137.0              109.6 
 
Foreign exchange movement on opening balance                     30.7             (22.5) 
 
Discretionary advance - capital and interest                                        12.2 
commitment (BEE Lender facility)                                  4.7 
 
Discretionary advance - distributions to                          2.0                1.9 
beneficiaries 
 
Interest receivable                                               5.2                6.7 
 
Group guarantee provided to BEE Lenders - default                                   40.0 
event under Notes (refer below)                                     - 
 
Reversal / (impairment) of BEE loans receivable -                                 (10.9) 
expected credit loss provision                                    5.8 
 
BEE payable restructuring - offset against BEE                (138.8)                  - 
receivable 
 
As at 30 June                                                    46.6              137.0 
 
BEE loans payable 
 
BEE loans payable represent those loans advanced by the BEE partners to the 
Group to acquire their interest in Cullinan and Finsch. Details of the 
movements are set out below. 
 
                                                        1 July 2020 -      1 July 2019 - 
US$ million                                              30 June 2021       30 June 2020 
 
As at 1 July                                                    108.6              120.5 
 
Foreign exchange movement on opening balance                     23.2             (23.8) 
 
Interest payable                                                  7.0               11.9 
 
BEE payable restructuring - offset against BEE                (138.8)                  - 
receivable 
 
As at 30 June                                                       -              108.6 
 
Group guarantee provided to BEE Lenders 
 
The BEE Partners obtained bank financing from ABSA, RMB and Investec ("the BEE 
Lenders") to refinance amounts owing by the BEE Partners to Petra, which had 
provided funding to the BEE Partners to enable them to acquire their interests 
in Cullinan and Finsch. As part of historical refinancing arrangements, the 
Group provided a guarantee to the BEE Lenders over the repayment of loans 
advanced to the Group's BEE Partners. The BEE Partners were expected to settle 
their loan obligations with the BEE Lenders from their share of future 
operational cashflows from the South African operations, either through 
repayment of the amounts owing to the BEE Partners by Petra or through 
recoverable advances provided by Petra from Group treasury. 
 
In March 2021, the Group completed its Restructuring, the BEE Lender facility 
was included as part of the Group's new banking facilities and the guarantee 
provided by the Group on behalf of the BEE Partners was extinguished (refer to 
note 10 for further detail). 
 
14.   EARNINGS PER SHARE 
 
                                          Continuing     Discontinued 
                                          operations       operations          Total 
                                        30 June 2021     30 June 2021   30 June 2021 
                                                 US$              US$            US$ 
 
Numerator 
 
Profit  / (loss) for the Year            239,085,494     (52,063,601)    187,021,893 
 
Denominator 
 
                                              Shares           Shares         Shares 
 
Weighted average number of ordinary 
shares used in basic EPS 
 
Brought forward                          865,431,343      865,431,343    865,431,343 
 
Effect of shares issued during the     2,721,433,209    2,721,433,209  2,721,433,209 
Year 
 
Carried forward                        3,586,864,552    3,586,864,552  3,586,864,552 
 
                                              Shares           Shares         Shares 
 
Dilutive effect  of potential                      -                -              - 
ordinary shares 
 
Weighted average number of ordinary 
shares in issue used in diluted EPS    3,586,864,552    3,586,864,552  3,586,864,552 
 
                                            US cents         US cents       US cents 
 
Basic profit / (loss) per share -               6.67           (1.45)           5.22 
US cents 
 
Diluted profit / (loss) per share -             6.67           (1.45)           5.22 
US cents 
 
 
 
                                    Continuing      Discontinued 
                                    operations      operations      Total 
                                    30 June 2020    30 June 2020    30 June 2020 
                                    US$             US$             US$ 
 
Numerator 
 
Profit  / (loss) for the Year       (132,012,863)   (58,008,824)    (190,021,687) 
 
Denominator 
 
                                    Shares          Shares          Shares 
 
Weighted average number of ordinary 
shares used in basic EPS 
 
Brought forward                     865,336,485     865,336,485     865,336,485 
 
Effect of shares issued during the  63,152          63,152          63,152 
Year 
 
Carried forward                     865,399,637     865,399,637     865,399,637 
 
                                    Shares          Shares          Shares 
 
Dilutive effect  of potential       -               -               - 
ordinary shares 
 
Weighted average number of ordinary 865,399,637     865,399,637     865,399,637 
shares in issue used in diluted EPS 
 
                                    US cents        US cents        US cents 
 
Basic profit / (loss) per share -   (15.26)         (6.70)          (21.96) 
US cents 
 
Diluted profit / (loss) per share - (15.26)         (6.70)          (21.96) 
US cents 
 
The number of potentially dilutive ordinary shares, in respect of employee 
share options, Executive Director and Senior Management share award schemes is 
nil (30 June 2020: nil). 
 
15.   ADJUSTED EARNINGS PER SHARE (non-GAAP measure) 
 
In order to show earnings per share from operating activities on a consistent 
basis, an adjusted earnings per share is presented which excludes certain items 
as set out below. It is emphasised that the adjusted earnings per share is a 
non-GAAP measure. The Petra Board considers the adjusted earnings per share to 
better reflect the underlying performance of the Group. The Company's 
definition of adjusted earnings per share may not be comparable to other 
similarly titled measures reported by other companies. 
 
                                          Continuing     Discontinued 
                                          operations       operations          Total 
                                        30 June 2021     30 June 2021   30 June 2021 
                                                 US$              US$            US$ 
 
Numerator 
 
Profit / (loss) for the Year             239,085,494     (52,063,601)    187,021,893 
 
Net unrealised foreign exchange         (62,242,188)      2, ,422,257   (59,819,931) 
loss / (gain) 
 
Present value discount - Williamson 
VAT receivable                                     -        (763,537)      (763,537) 
 
Profit on disposal of subsidiary        (14,696,171)                -   (14,696,171) 
 
Impairment charge - operations*           13,551,364       21,438,352     34,989,716 
 
Impairment/(reversal) charge -               439,236                -        439,236 
other receivables 
 
(Reversal) / impairment charge of        (5,824,201)                -    (5,824,201) 
BEE loans receivable - expected 
credit loss provision 
 
Taxation charge / (credit) on             17,228,580                -     17,228,580 
unrealised foreign exchange (gain) 
/ loss 
 
Taxation credit on impairment            (3,308,166)                -    (3,308,166) 
charge* 
 
Gain on extinguishment of Notes        (213,349,503)                -  (213,349,503) 
 
Transaction costs - Human rights          12,651,014       19,459,877    31, 110,891 
settlement agreement and provisions 
for unsettled and disputed tax 
claims 
 
Adjusted loss for the Year 
attributable to parent                  (16,464,541)      (9,506,652)   (25,971,193) 
 
*Portion attributable to equity 
shareholders of the Company 
 
Denominator 
 
                                              Shares           Shares         Shares 
 
Weighted average number of ordinary 
shares used in basic EPS 
 
As at 1 July                             865,431,343      865,431,343    865,431,343 
 
Effect of shares issued during the     2,721,433,209    2,721,433,209  2,721,433,209 
Year 
 
Carried forward                        3,586,864,552    3,586,864,552  3,586,864,552 
 
                                              Shares           Shares         Shares 
 
Dilutive effect of potential                       -                -              - 
ordinary shares 
 
Weighted average number of ordinary 
shares in issue used in diluted EPS    3,586,864,552    3,586,864,552  3,586,864,552 
 
                                            US cents         US cents       US cents 
 
Adjusted basic profit / (loss) per            (0.46)           (0.27)         (0.73) 
share - US cents 
 
Adjusted diluted profit/(loss) per            (0.46)           (0.27)         (0.73) 
share - US cents 
 
 
 
                                    Continuing      Discontinued    Total 
                                    operations      operations      30 June 2020 
                                    30 June 2020    30 June 2020    US$ 
                                    US$             US$ 
 
Numerator 
 
Profit / (loss) for the Year        (132,012,863)   (58,008,824)    (190,021,687) 
 
Net unrealised foreign exchange     64,036,456      (650,203)       63,386,253 
loss / (gain) 
 
Present value discount - Williamson                                 6,816,715 
VAT receivable                      -               6,816,715 
 
Profit on disposal of subsidiary    -               -               - 
 
Impairment charge - operations*     39,879,861      34,644,929      74,524,790 
 
Impairment/(reversal) charge -      (382,713)       -               (382,713) 
other receivables 
 
(Reversal) / impairment charge of                                   10,887,714 
BEE loans receivable - expected     10,887,714      - 
credit loss provision 
 
Taxation charge / (credit) on                                       (17,396,618) 
unrealised foreign exchange (gain)  (17,396,618)    - 
/ loss 
 
Taxation credit on impairment       (8,595,566)     -               (8,595,566) 
charge* 
 
Gain on extinguishment of Notes     -               -               - 
 
Transaction costs - Human rights    -               -               - 
settlement agreement and provisions 
for unsettled and disputed tax 
claims 
 
Adjusted loss for the Year 
attributable to parent              (43,583,729)    (17,197,382)    (60,781,111) 
 
*Portion attributable to equity 
shareholders of the Company 
 
Denominator 
 
                                    Shares          Shares          Shares 
 
Weighted average number of ordinary 
shares used in basic EPS 
 
As at 1 July                        865,336,485     865,336,485     865,336,485 
 
Effect of shares issued during the  63,152          63,152          63,152 
Year 
 
Carried forward                     865,399,637     865,399,637     865,399,637 
 
                                    Shares          Shares          Shares 
 
Dilutive effect of potential        -               -               - 
ordinary shares 
 
Weighted average number of ordinary 865,399,637     865,399,637     865,399,637 
shares in issue used in diluted EPS 
 
                                    US cents        US cents        US cents 
 
Adjusted basic profit / (loss) per  (5.04)          (1.99)          (7.02) 
share - US cents 
 
Adjusted diluted profit/(loss) per  (5.04)          (1.99)          (7.02) 
share - US cents 
 
16.   IMPAIRMENT CHARGE 
 
The current market conditions in the global rough diamond market, the ongoing 
impact of the COVID-19 pandemic, volatility of and variability in product mix 
are all factors impacting the rough diamond prices achieved by Petra during the 
Year, resulting in management taking a critical review of the Group's business 
models and operational assets. The carrying amounts of the Group's assets are 
reviewed at each reporting date to determine whether there is any indication of 
impairment. If there is any indication that an asset may be further impaired or 
an impairment reversal may apply, its recoverable amount is estimated. The 
recoverable amount is determined on a fair value less cost to develop basis. 
 
The operations of Cullinan, Finsch and Koffiefontein were held at recoverable 
value as a result of FY 2020 impairments. During the Year under review, the 
Group reviewed the carrying value of its investments, loan receivables and 
operational assets for indicators of impairment. Following the assessment, 
impairment of property, plant and equipment was considered appropriate for 
Finsch and Koffiefontein. No impairment was considered necessary for Cullinan, 
nor was any impairment reversal considered appropriate in the current year. The 
Group recognised a consolidated income statement charge of US$17.3 million 
being the amount required to write down management's estimate of recoverable 
value of the Finsch and Koffiefontein assets. Williamson has been classified as 
Held for Sale as at 30 June 2021. For impairment considerations of Williamson, 
refer to note 17. 
 
. 
 
Impairment                     Asset class           Carrying    Impairment Carrying value 
(US$ million)                                        value pre                   post 
                                                    impairment                impairment 
 
Impairment operations: 
 
Cullinan               Property, plant & equipment         497.9          -          497.9 
 
Finsch                 Property, plant & equipment         210.6     (15.1)          195.5 
 
Koffiefontein          Property, plant & equipment           3.3      (2.2)            1.1 
 
Sub-total                                                  711.8     (17.3)          694.5 
 
Impairment - 
non-financial 
receivables: 
 
Other - current        Other receivables                     0.6      (0.4)            0.2 
 
Sub-total                                                    0.6      (0.4)            0.2 
 
Total                                                      712.4     (17.7)          694.7 
 
30 June 2020 
 
During FY 2020, the Group reviewed the carrying value of its investments, loan 
receivables and operational assets for indicators of impairment. Following the 
assessment, impairment of property, plant and equipment were considered 
appropriate for Cullinan, Finsch, Koffiefontein and Williamson. The Group 
recognised a consolidated income statement charge of US$85.5 million, being 
management's estimate of recoverable value of the Cullinan, Finsch, 
Koffiefontein and Williamson assets. For impairment considerations of 
Williamson, refer to note 16. 
 
Impairment                     Asset class           Carrying    Impairment Carrying value 
(US$ million)                                        value pre                   post 
                                                    impairment                impairment 
 
Impairment operations: 
 
Cullinan               Property, plant & equipment         250.1     (27.6)          222.5 
 
Finsch                 Property, plant & equipment         475.2     (11.6)          463.6 
 
Koffiefontein          Property, plant & equipment          17.4     (11.7)            5.7 
 
Sub-total                                                  742.7     (50.9)          691.8 
 
Williamson (refer note Property, plant & equipment         101.3     (34.6)           66.7 
16) 
 
Sub-total                                                  844.0     (85.5)          758.5 
 
Impairment - 
non-financial 
receivables: 
 
Other - reversal       Other receivables                       -        0.4            0.4 
current 
 
Sub-total                                                      -        0.4            0.4 
 
Total                                                      844.0     (85.1)          758.9 
 
Cullinan, Finsch, and Koffiefontein impairment considerations and assumptions 
 
The Group performs impairment testing on an annual basis of all operations and 
when there are potential indicators of impairment. The impairment testing 
performed resulted in impairments of the Koffiefontein and Finsch assets (30 
June 2020: Cullinan, Finsch, Koffiefontein and Williamson). The key assumptions 
used in determining the recoverable value calculations, determined on fair 
value less cost to develop basis, are listed in the table below: 
 
Group assumptions for 30 June 2021 and 30 June 2020: 
 
Key assumptions            Explanation 
 
LOM and recoverable value  Economically recoverable reserves and resources are based on 
of reserves and resources  management's expectations based on the availability of reserves 
                           and resources at mine sites and technical studies undertaken in 
                           house and by third party specialists. 
                           The LOM for the operations are as follows: 
                           Cullinan: FY 2031 (FY 2020: FY 2029) 
                           Finsch: FY 2030 (FY 2020: FY 2030) 
                           Koffiefontein: FY 2023 ( (FY 2020: FY 2023) 
                           Williamson: FY 2030 
                           Resources remaining after the current LOM plans have not been 
                           included in impairment testing for the operations. 
 
LOM reserves and resources Finsch: LOM plan over the next nine years; total resource 
                           processed 26.8 Mt (FY 2020: LOM plan over the next 10 years; 
                           total resource processed 33.0 Mt). 
 
                           Cullinan: LOM plan over the next nine years; total resource 
                           processed 38.6 Mt (FY 2020: LOM plan over the next nine years; 
                           total resource processed 37.8 Mt). 
 
                           Koffiefontein: LOM plan over the next two years; total resource 
                           processed 2.2 Mt (FY 2020: LOM plan over the next three years; 
                           total resource processed 2.9 Mt). 
 
                           FY2020: Williamson: LOM plan over the next nine years; total 
                           resource processed 49.3 Mt). 
 
LOM - capital expenditure  Management has estimated the timing and quantum of the capital 
                           expenditure based on the Group's current LOM plans for each 
                           operation. There is no inclusion of capital expenditure to 
                           enhance the asset beyond exploitation of the LOM plan orebody. 
 
Residual Value             Cullinan: Management included a residual value of property, 
                           plant and equipment to be used beyond the current LOM, given 
                           the significant resource base estimated to be available at the 
                           end of the current LOM. 
                           No residual values were included in the impairment assessments 
                           of the other mining operations. 
 
Diamond prices             The diamond prices used in the impairment test have been set 
                           with reference to recently achieved pricing and market trends, 
                           and long-term diamond price escalators are informed by industry 
                           views of long-term market supply/demand fundamentals. Given the 
                           current market uncertainty, the assessment of short-term 
                           diamond prices and the rate and extent of pricing recovery, 
                           together with the longer-term pricing escalators, represented a 
                           critical judgement. 
 
                           The 30 June 2021 impairment testing models starting price 
                           assumptions have been updated to reflect the improved pricing 
                           achieved during the Year when compared to the 30 June 2020 
                           impairment models. Diamond prices have been assumed to increase 
                           from FY 2022 and then 4% from FY 2024, returning to pricing 
                           levels achieved before the impact of COVID-19, representing an 
                           increase of 25-30% from pricing achieved at the lowest point 
                           during FY2020. The long-term models incorporate normalised 
                           diamond price escalation of 1.9% above a long-term US inflation 
                           rate of 2.5% per annum from FY 2025 to FY 2030. Estimates for 
                           the contribution of Exceptional Diamonds sold for more than 
                           US$5.0 million each are determined with reference to historical 
                           trends. 
 
                           30 June 2020 impairment testing models incorporated diamond 
                           prices impacted by the COVID-19 pandemic with expected diamond 
                           prices returning to the pre-COVID-19 adjusted long-term average 
                           by FY 2024. The long-term models incorporate normalised diamond 
                           price escalation of 1.8% above a long-term US inflation rate of 
                           2.5% per annum from FY 2024 to FY 2030. Estimates for the 
                           contribution of Exceptional Diamonds sold for more than US$5.0 
                           million each are determined with reference to historical 
                           trends. 
 
Discount rate              A ZAR discount rate of 12.0% (30 June 2020: 11.25%) was used 
                           for the South African operations in FY 2020 and a USD discount 
                           rate of 13.75% (30 June 2020: 13.5%) for Williamson. Discount 
                           rates calculated based on a nominal weighted average cost of 
                           capital including the effect of factors such as market risk and 
                           country risk as at the Year end. USD and ZAR discount rates are 
                           applied based on respective functional currency of the cash 
                           generating unit. 
 
Cost inflation rate        Long-term inflation rates of 3.5-7.8% (30 June 2020: 6.0-9.8%) 
                           above the long-term US$ inflation rate were used for Opex and 
                           Capex escalators. 
 
Exchange rates             Exchange rates are estimated based on an assessment of current 
                           market fundamentals and long-term expectations. The US$/ZAR 
                           exchange rate range used for all South African operations 
                           commenced at ZAR14.50 (30 June 2020: ZAR16.00), reflecting the 
                           volatility experienced during Year, before further devaluing at 
                           5.5% (30 June 2020: 3.5% from FY 2023) per annum until FY 2027 
                           and thereafter devaluing at 3.5% per annum. Given the 
                           volatility in the USD/ZAR exchange rate and the current levels 
                           of economic uncertainty, the determination of the exchange rate 
                           assumptions required significant judgement. 
 
Valuation basis            Discounted present value of future cash flows. 
 
Williamson                 During FY2020, Williamson was placed on care and maintenance. 
                           For impairment testing at Williamson, for FY2020 management 
                           assumed that operations would recommence from 1 July 2021 at 
                           normal monthly costs. However if the recommencement of 
                           operations had been delayed by six months, the impact would be 
                           to increase the impairment by an additional US$9.4 million. 
 
                           During the current Year, Williamson was classified as an asset 
                           held for sale, for further detail refer to note 17. 
 
Sensitivity analysis 
 
The impact of applying reasonable sensitivities on the key inputs based on 
management's assumptions at 30 June 2021 is noted below: 
 
                                                      Additional impairment charge 
 
(US$ million)                                           Cullinan     Finsch   Koffiefontein 
 
Base case 
 
Increase in discount rate by 2%                           32.1        37.0         1.1 
 
Reduction in pricing by 5% over Life of                   46.1        54.8         1.1 
Mine 
 
Reduction in short-term production by 10%                 22.4        33.0         1.1 
 
Increase in Opex by 5%                                    22.9        36.3         1.1 
 
Strengthening of the ZAR from US$/ZAR14.50                35.4        42.0         1.1 
to US$/ZAR14.00 
 
 
17.            DISPOSAL OF OPERATIONS 
 
a)     Disposal of Botswana (exploration) 
 
On 20 July 2020 the Company announced that it had entered into an agreement to 
dispose of its exploration assets in Botswana via the sale of 100% of its 
holding in Sekaka Diamonds Exploration (Pty) Limited (previously known as Petra 
Diamonds Botswana (Pty) Limited) ("Sekaka") to Botswana Diamonds PLC for a 
total consideration of US$300,000 and a 5% royalty on future diamond revenues 
should any of the prospects within the exploration licences be brought into 
production. 
 
The assets of Sekaka include the Company's three existing Prospecting Licenses 
in Botswana, which includes the KX36 project, a 3.5 hectare kimberlite that was 
a new discovery by Petra in 2010, as well as a bulk sampling plant.  These 
assets have been classified as 'Assets held for sale' since 30 June 2018 
following a decision by the Board to dispose of its Botswana exploration 
assets; the disposal of Sekaka was not a result of the recent sales process, as 
announced on 26 June 2020, undertaken by the Group with respect to the 
Restructuring. 
 
The purchase price of US$300,000 will be payable in two equal instalments of 
US$150,000 each, on or before 31 August 2021 and 31 August 2022 respectively. 
Petra is also entitled to a 5% royalty on the sale of diamonds commercially 
produced from any kimberlite which falls within the licence areas covered in 
the sale. Botswana Diamonds has the option to buy-out the royalty for a cash 
payment of US$2.0 million. 
 
The disposal completed during November 2020. 
 
Effect of the transaction 
 
The transaction had the following effect on the Group's assets and liabilities: 
 
i)     Net assets of Sekaka: 
 
US$ million                                                                 As at 30 
                                                                       November 2020 
 
Mining property, plant and equipment                                             0.2 
 
Trade and other receivables                                                        - 
 
Non-current assets held for sale                                                 0.2 
 
Trade and other payables                                                           - 
 
Non-current liabilities associated with non-current assets held for                - 
sale 
 
Net assets disposed                                                              0.2 
 
ii)    Post tax profit on disposal of Sekaka at: 
 
                                                                        Period ended 
US$ million                                                              30 November 
                                                                                2020 
 
Fair value consideration receivable on disposal                                 0.3¹ 
 
Less: net assets disposed of                                                   (0.2) 
 
Add: foreign currency translation recycled on disposal                          13.3 
 
Profit on disposal                                                              13.4 
 
Add: net profit for the Period²                                                  1.3 
 
Profit on disposal of subsidiary                                                14.7 
 
 
¹ The Company has attributed US$nil fair value to the 5% royalty given the 
uncertainty and time taken to convert an exploration project to a commercially 
viable mine. 
 
² The Company incurred US$0.1 million in cash costs during the Year. 
 
b)    Asset Held for Sale 
 
         Williamson 
 
The Board has decided to review its strategic options at Williamson and the 
asset has therefore been classified as an asset held for sale.. As a result, 
the assets and liabilities of the Williamson mining operation (being Petra's 
75.0% interest) have been classified as held for sale in the Statement of 
Financial Position at 30 June 2021, in accordance with IFRS 5. The financial 
results of the Williamson operation for the Year have been disclosed in the 
Consolidated Income Statement in Loss on discontinued operation. The Williamson 
mining operation is a separate operating segment for the purposes of the 
Group's segmental reporting. 
 
i)       Net assets of Williamson: 
 
US$ million                                     Book value prior  Impairment       30 June 
                                                              to                      2021 
                                                reclassification 
                                                  of as held for 
                                                            sale 
 
Mining property, plant and equipment                        52.7     (21.4)¹          31.3 
 
Non-current trade and other receivables                      0.7           -           0.7 
 
Trade and other receivables                                  2.9           -           2.9 
 
Inventory                                                   15.5           -          15.5 
 
Cash and cash equivalents                                    9.2           -           9.2 
 
Non-current assets held for sale                            81.0      (21.4)          59.6 
 
Environmental liabilities, provisions and other           (22.9)           -        (22.9) 
non-current trade and other payables 
 
Trade and other payables and provisions                   (10.6)           -        (10.6) 
 
Non-current liabilities associated with 
non-current assets held for sale                          (33.5)           -        (33.5) 
 
Net assets                                                  47.5      (21.4)          26.1 
 
ii)      Result of Williamson: 
 
                                                         1 July 2020 -      1 July 2019 
US$ million                                               30 June 2021        - 30 June 
                                                                                   2020 
 
Revenue                                                            4.6             52.5 
 
Cost of sales                                                   (13.8)           (68.7) 
 
Gross loss                                                       (9.2)           (16.2) 
 
Impairment charge - operations                                       -           (34.6) 
 
Impairment reversal / (charge) - other receivables                 0.7            (6.8) 
 
Provisions for unsettled and disputed tax claims                (19.5)                - 
 
Financial income                                                     -              0.6 
 
Financial expense                                                (2.7)            (0.8) 
 
Loss before tax                                                 (30.7)           (57.8) 
 
Income tax charge                                                    -            (0.2) 
 
Loss after tax before impairment charge                         (30.7)           (58.0) 
 
Impairment charge1                                              (21.4)                - 
 
Net loss for the Year                                           (52.1)           (58.0) 
 
Attributable to: 
 
-      Equity holders of the parent                             (52.1)           (58.0) 
 
-      Non-controlling interest                                      -                - 
 
                                                                (52.1)           (58.0) 
 
 
1. The US$21.4 million impairment loss recorded on the Williamson assets 
represents the difference between the assets measured at the lower of their 
carrying amount and fair value less costs to sell.  In determining the fair 
value used to calculate the appropriate write down, management took into 
consideration the best available information at the present time with reference 
to ongoing discussions with a potential investor. The impairment charge of 
US$21.4 million is recognised to reduce assets of Williamson to equal the fair 
value less costs to sell. 
 
iii)      The consolidated cash flow statement includes the following amounts 
relating to Williamson: 
 
                                                        1 July 2020 -       1 July 2019 
US$ million                                              30 June 2021         - 30 June 
                                                                                   2020 
 
Operating activities                                            (5.2)               7.9 
 
Investing activities                                            (0.3)             (7.9) 
 
Net cash utilised in discontinued operations                      0.6             (4.2) 
 
 
18.    SIGNIFICANT NON CASH TRANSACTIONS 
 
(a) Operating and investing activities 
 
US$ million                                                          2021        2020 
 
Operating activities 
 
Depreciation of property, plant and equipment                        75.9        78.6 
 
Amortisation of right-of-use asset                                    0.9         4.9 
 
Unrealised gain on lease liability                                      -       (0.8) 
 
Impairment charge                                                    17.3        92.3 
 
Impairment charge reversal for other receivables                      0.4       (0.4) 
 
Impairment of BEE loans receivable - expected credit loss           (5.8)        10.9 
(reversal) / charge provision 
 
Loss and impairment charge on discontinued operations                43.2         0.1 
 
Profit on disposal of subsidiary                                   (14.7)           - 
 
Movement in provisions                                                4.8       (0.1) 
 
Other finance expense - unwinding of present value adjustment         4.3         4.6 
for rehabilitation costs 
 
Other finance expense - post-retirement medical fund                  0.9         0.9 
 
Net unrealised foreign exchange (gains)/losses                     (77.1)        82.1 
 
(Profit)/loss on sale of property, plant and equipment              (0.6)       (0.1) 
 
Share-based payment provision                                         0.5         0.7 
 
                                                                     50.0       273.7 
 
Investing activities 
 
Non-cash rehabilitation asset adjustment - change in estimate       (5.8)       (0.1) 
 
Non-cash rehabilitation provision adjustment                        (0.1)       (0.8) 
 
Non-cash pension and post-retirement fund adjustment - change         0.8         0.8 
in estimate 
 
Non-cash interest receivable from BEE loans on investing              5.2         6.7 
activity 
 
                                                                    (0.1)         6.6 
 
Financing activities 
 
Non-cash transaction costs on Notes unamortised at time of            2.7           - 
Restructure 
 
Non-cash interest payable on BEE loans on investing activity          7.0        11.9 
 
                                                                      9.7        11.9 
 
(b) Financing activities - change in loans and borrowings 
 
US$ million                      Senior      Senior  BEE Lenders                   Total 
                                secured     secured    guarantee                    2021 
                            second lien lender debt   recognised 
                                  notes  facilities                    Lease 
                                   2021        2021                liability 
 
Loans and borrowings 
 
At 1 July                         676.9        52.1         40.0         4.7       773.7 
 
Cash draw-downs                    30.0           -            -           -        30.0 
 
Cash repayments (capital 
and interest)                         -      (14.0)        (4.7)           -      (18.7) 
 
Lease payments                        -           -            -       (0.7)       (0.7) 
 
Non-cash 
 
- Initial recognition of 
lease liability                       -           -            -         0.7         0.7 
 
- Gain on lease liability             -           -            -           -           - 
 
- lease terminations                  -           -            -       (0.4)       (0.4) 
 
- loss on discontinued 
operation                             -           -            -       (3.6)       (3.6) 
 
- Debt for equity 
conversion                      (415.0)           -            -           -     (415.0) 
 
-      Extinguishment of 
remaining Notes                 (299.2)           -            -           -     (299.2) 
 
-      Issue of new Notes         306.7           -            -           -       306.7 
 
-      Transaction costs         (20.8)       (1.7)            -           -      (22.5) 
 
-      Unamortised 
transaction costs                   2.7           -            -           -         2.7 
 
- Guarantee obligation 
recognised (refer to note 
10)                                   -        45.4       (45.4)           -           - 
 
- Interest accruing during 
the Year                           46.0         6.8          4.7         0.1        57.6 
 
- Effect of foreign 
exchange                              -        14.3          5.4         0.2        19.9 
 
At 30 June                        327.3       102.9            -         1.0       431.2 
 
 
 
 
US$ million                       Senior      Senior   BEE Lenders                Total 
                                 secured     secured     guarantee                 2020 
                             second lien lender debt    recognised 
                                   notes  facilities                    Lease 
                                    2020        2020                liability 
 
Loans and borrowings 
 
At 1 July                          650.6           -             -          -     650.6 
 
Cash draw-downs                        -       100.9             -          -     100.9 
 
Cash repayments (capital and      (23.6)      (46.1)             -          -    (69.7) 
interest) 
 
Lease payments                         -           -             -      (5.0)     (5.0) 
 
Non-cash 
 
- Initial recognition of               -           -             -                 10.0 
lease liability                                                          10.0 
 
- Gain on lease liability              -           -             -      (0.8)     (0.8) 
 
- lease terminations                   -           -             -          -         - 
 
- loss on discontinued                 -           -             -          -         - 
operation 
 
- Debt for equity conversion           -           -             -          -         - 
 
-      Extinguishment of               -           -             -          -         - 
remaining Notes 
 
-      Issue of new Notes              -           -             -          -         - 
 
-      Transaction costs               -           -             -          -         - 
 
-      Unamortised                     -           -             -          -         - 
transaction costs 
 
- Guarantee obligation                 -           -          40.0          -      40.0 
recognised (refer to note 
10) 
 
- Interest accruing during          49.9         0.2             -                 50.6 
the Year                                                                  0.5 
 
- Effect of foreign exchange           -       (2.9)             -          -     (2.9) 
 
At 30 June                         676.9        52.1          40.0        4.7     773.7 
 
 
RESPONSIBILITY STATEMENT 
 
We confirm that to the best of our knowledge: 
 
a)    the preliminary financial statements have been prepared in accordance 
with International Financial Reporting Standards as adopted by the European 
Union, and give a true and fair view of the assets, liabilities, financial 
position and profit of the Group for the Year; and 
 
b)    the preliminary management report for the Year includes a fair review of 
the information required by the FCA's Disclosure and Transparency Rules (DTR 
4.1.8 R and 4.1.9 R). 
 
By order of the Board 
 
Richard Duffy 
 
Chief Executive Officer 
 
14 September 2021 
 
 
 
END 
 
 

(END) Dow Jones Newswires

September 14, 2021 02:00 ET (06:00 GMT)

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