Goldplat (LON:GDP) has announced the appointment of Matthew Robinson as its new Non-Executive Chairman, subject to Shareholder approval, which will be sought at the upcoming AGM on 27 October 2016. Mr Robinson has a significant amount of experience relating to metals and mining companies as well as growth phase companies.
Our recommendation and target price remain under review.
Petra Diamonds (LON:PDL) has released solid results for FY 2016, with revenue up 1% YoY to US$431m. EBITDA increased 18% YoY to US$164m and net income was up 12% to US$67m.
Production was up 16% YoY to 3.7mcts, ahead of company guidance, which benefitted the top line as market conditions remained slack through the period. Costs benefitted from significant USDZAR depreciation which was largely the driver for the margin strength. Indeed, for much of the period PDL faced challenges from dilution in the underground mining areas at both Finsch and Cullinan. However, PDL states that this challenging period operationally is largely complete which should result in stronger grades and product mix in the near term and therefore a positive impact on margins.
PDL stated that it did meet its internal distribution covenants and consequently will not pay a dividend for FY 2016. Net debt has risen rapidly over the course of the year up 124% to US$172m as the group reached the peak of its expansion programme; capex was up 18% YoY to US$324m.
Whilst PDL’s market guidance is for continued challenging trading conditions its own production is expected to reach the long term target of 5mnct ahead of schedule in FY 2018. Guidance for FY 2017 is 4.4-4.6mnct a 19-24% YoY increase.