Petra Diamonds is set to undergo a significant transformation in its board structure as part of its efficiency and cost-saving strategy going into 2024. The diamond mining company will reduce its board from eight to seven directors, down from ten prior to the company’s annual general meeting in November.
This move is a strategic response to the current market conditions and feedback from shareholders. Petra emphasizes that these small changes are crucial for the ongoing cost-saving initiatives across the group. They aim to ensure greater flexibility in the face of market challenges.
The company also announced a 25% reduction in board fees, thanks to a combination of factors including the reduction in the number of directors, the merging of the sustainability and health and safety committees, and a fee reduction for the chairperson and non-executive director (NED) positions.
Jon Dudas, serving as an independent NED, will leave the board on February 17, 2024. However, he will transition to a board advisor role for six months until August 17, 2024. Concurrently, Alex Watson will step down as a non-independent NED and a member of the sustainability and investment committees but will assume the role of board observer.
Adding to these changes, José Manuel Vargas, holding 8.57% of Petra’s issued share capital, has been appointed as a non-independent NED, effective January 1, 2024.
According to a report by Mining Weekly, the new year will also see the formation of a merged safety, health, and sustainability committee, chaired by Lerato Molebatsi, the current sustainability committee chairperson. This merger is designed to improve board efficiency and reduce costs without compromising the company’s commitment to health and safety matters. The committee will include Molebatsi, Varda Shine (board chair), Richard Duffy (CEO), and Bernie Pryor (current health and safety committee chair).
Bernie Pryor will take over as chair of the remuneration committee from Varda Shine, starting January 1, 2024. In terms of compensation, chairperson and NED fees will be reduced by 5%, effective January 1, 2024, except for the safety, health, and sustainability committee chair fee, which will see a slight increase.
“I believe the changes announced today will result in a lower-cost, more efficient, and right-sized board that has an appropriate balance of skills and experience,” stated Varda Shine, expressing confidence in the newly structured board.
