Petra Diamonds’ revenues drop 31%

Production up 6%
Image Courtesy: Petra Diamonds
Image Courtesy: Petra Diamonds

Though this period accounted a 31 percent drop (on y-o-y basis) to value US$96.1 million, production was boosted with a 6 percent increase to stand at 791,443 carats.

The dip in revenue is being attributed to the earlier timing of the March tender resulting in lower sales volumes, change in product mix (lower incidence of high quality stones and higher volumes of smaller diamonds), the lower ROM grade at Cullinan and the previously reported softer diamond market in comparison to Q3 FY 2014.

The company noted that the diamond market stabilized during Q3, with prices on a like for like basis slightly higher compared to the previous quarter. But Petra achieved average prices lower than January 2015 pricing guidance, due to the product mix of diamonds sold during Q3.

Johan Dippenaar, Chief Executive Officer, commented: "We have delivered production growth in Q3 by an increase in tonnes treated at all operations. The current reliance on production from the mature mining areas at our underground mines is expected to change over the coming quarters as the company passes through this transitional period and starts to access undiluted ore. The 122 carat blue diamond that Petra retains an interest in has produced some exceptional polished stones and the company looks forward, with its partner, to the marketing of these stones over the coming months."

Also, during the three months, the company’s beneficiation partner cut and polished the 122 carat blue diamond (that Petra sold in September 2014 and retained a 15 percent interest). The diamond has produced four polished stones of significance.

The company expects to produce 3.2 million carats in the full year, having lowered its current guidance of 3.3 million carats. Also, the company announced it will pay a maiden dividend of 2.0p per share for FY 2015.


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