Petra records its highest quarterly production in Q1 FY 2015

In its Interim Management Statement ("IMS") for the months 1 July 2014 to 24 October 2014, Petra Diamonds Limited noted it has achieved its highest quarterly production ever. The said quarter’s production rose 2 percent (on y-o-y basis) to 833,744 carats (Q1 FY 2014: 816,735 carats).

There was a 55 percent jump in revenues in the said period, to US$100.8 million (Q1 FY 2014: US$65.1 million). This increase is being attributed to increased production and the sale of an 85 percent interest in the 122 carat blue diamond from Cullinan for US$23.5 million; Petra retains a 15 percent interest in the sale of the polished yield (after beneficiation and related expenses).

Johan Dippenaar, Chief Executive Officer, commented: "These results demonstrate a strong performance for the Group, with record Q1 production and sales. It is particularly pleasing to see the meaningful contribution from the smaller mines, Koffiefontein, Kimberley Underground and Williamson, as each of these operations have been ramping up output successfully. Our major expansion plans at Finsch and Cullinan are progressing as planned, with the targeted output of 3.2 million carats for FY 2015 and ca. 5 million carats for FY 2019 firmly on track."

The company noted that the diamond market is exhibiting customary seasonal softness in the post summer period, but it is expected to firm up towards the end of the calendar year. Also, demand from US, China and India, remains firm and the longer term outlook for the diamond market remains favourable, underpinned by constrained supply from mining production. There are no changes to FY 2015 diamond price guidance. All expansion programmes remain on track and in line with expectations.

On the back of continued strong production and financial results, Petra's lender group has agreed to increase the Group's overall financing facilities, at reduced lending rates, by the equivalent of ca. US$40.4 million to ca. US$260 million, thereby providing additional funding headroom, financial flexibility and further strengthening of the balance sheet.