Petra Diamonds Posts 31% Jump in Output, Revenue 19% Higher

(IDEX Online News) – Petra Diamonds posted a 31-percent rise in production to 1,635,716 carats in the second half of 2013 from the first six months of last year.

The mid-size miner says it remains on track to meet full year guidance of around 3.0 million carats.

Revenue rose 19 percent to $185.5 million, boosted by the timing of Petra’s diamond tenders and the sale proceeds from the exceptional 29.6-carat blue diamond recently recovered at the Cullinan mine. "The stone has the potential to yield a polished diamond of great value and importance and will be sold during H2 FY 2014," the firm said.

"The market for rough diamonds has strengthened over recent months; Petra expects this firmer market to continue, with solid results expected from the group’s tenders in the second half of 2014."

Petra reported capital expenditure of $85.3 million compared with $92.1 million in the first half of last year, and full year spending is on track to be in line with FY 2014 guidance.

The miner's net debt was $118.1 million, and was in line with expectations, and capital expansion plans remain fully funded. Debt facilities undrawn and available to the group at 31 December 2013 were $67.5 million.

Chief Executive Officer Johan Dippenaar commented: “Petra has delivered a strong first half of the 2014 financial year, with production firmly on track to meet our original full year guidance of three million carats. The rough diamond market has also strengthened over recent months and we expect this firmer market to continue into H2, when the larger part of our diamond sales for the year take place.

"Increased production and associated cashflows place the group in a robust position as we continue to deliver on our growth plans to achieve five million carats annual production by FY 2019.”