Petra Diamonds’ production flat in Q3

Petra Diamonds Limited announced its unaudited trading update for its Q3 period or the months from 1 January 2017 to 31 March 2017. Its production was flat at 999,768 carats (Q3 FY 2016: 995,905 carats).

ROM production for Q3 increased 18 percent to 760,916 carats (Q3 FY 2016: 646,850 carats) further to ROM grade improvements as a result of the ongoing ramp-up of underground expansion projects. Q3 tailings and open pit volumes were impacted by unseasonably high rainfall in both South Africa and Tanzania.

During the quarter, revenues dipped 1 percent to US$119.1 million, with no revenue from Exceptional Diamonds, (Q3 FY 2016: US$120.5 million, including US$15.0 million from Exceptional Diamonds). Excluding Exceptional Diamonds, revenue increased 13 percent. The company sold 1,069,886 carats of diamonds, up 14 percent from 937,526 in the corresponding quarter last year.

Johan Dippenaar, Chief Executive Officer, said, "Further progress has been made with our expansion programmes during the Period, as evidenced by the higher ROM grades achieved as a consequence of the increased contribution from undiluted ore. The significant strengthening of the company's balance sheet following the recent debt restructuring, as well as the positive signs we are seeing in the diamond market, position us well as we continue to ramp up production from our capital programmes."

Rough diamond prices up ca. 2 percent on a like-for-like basis in comparison to the average for H1 FY 2017.

Production for nine months to 31 March 2017 rose 15 percent to 3,014,856 carats. The Group maintains full year production guidance of ca. 4.4 Mcts. Revenue for nine months to 31 March 2017 up 27% to US$347.6 million, including US$10.9 million from Exceptional Diamonds, (Q3 FY 2016: US$274.4 million, including US$25.0 million from Exceptional Diamonds). Excluding Exceptional Diamonds, revenue increased 35 percent.

According to the company, underground expansion programmes remain in line with expectations. Also, the commissioning of the new Cullinan plant commenced towards the end of Q3 FY 2017, with initial production expected during May 2017 and full commissioning planned to be achieved by the end of Q4 FY 2017. Diamond inventories stood at US$49.3 million.