Petra Foresees 12% Jump in Output to 3M Carats

(IDEX Online News) – Petra Diamonds foresees a rise of around 12 percent in rough diamond production of three million carats for the fiscal year ending on June 30, 2014.

Petra continues to foresee longer-term production reaching five million carats by fiscal year 2019.

Meanwhile, total operating costs “will remain well controlled, but certain cost categories (labor and electricity) are expected to increase above the South African consumer price index (CPI), due to South African mining inflation running above CPI and the weakening ZAR [rand] resulting in increases associated with imported cost components”.

On the issue of diamond prices, Petra said it expects pricing “to be supported by constrained supply and a firmer US market as well as continued growth in China, albeit at a lower rate than over recent years, and the seasonal increase in demand for polished due to the traditional festive periods”.

The company’s guidance for average price per carat at its operations placed the Koffiefontein mine first at $518, Kimberley at $301, Williamson at $254, Helam with $145, Cullinan at $139, and the Finsch mine at $113.