Petra Posts 17% Rise in Fiscal 2014 Production

(IDEX Online News) – Petra Diamonds’ fiscal 2014 production rose 17 percent to 3.11 million carats due to increases at the Finsch, Williamson, Koffiefontein and Kimberley Underground mines, partially offset by reductions at the Cullinan and Helam operations.

The rough diamond market “maintained its firmer trend” throughout the second half of the year.

Gross mine revenue increased 17 percent to $472.6 million, due to increased volumes and the sale of two exceptional ($5+ million) Cullinan stones for $34.1 million, a 126.4-carat white diamond that sold for $8.5 million in December 2013, and a 29.6-carat blue diamond that sold for $25.6 million in February 2014.

Carats sold increased 23 percent to 3,134,706 in line with the increasing trend of production.

Johan Dippenaar, CEO of Petra Diamonds, said: "FY 2014 has seen a further year of solid production and revenue growth, with the group on track to reach annual production of circa 5 million carats by FY 2019. We have also recorded further progress with our expansion programs, which remain on schedule and on budget.

“Petra has experienced a firmer diamond market during the second half of FY 2014 and the outlook remains positive due to constrained supply and a firm US market, as well as continued growth in emerging markets."

At Finsch, production increased 33 percent to 1,885,160 carats, further to a 12 percent increase in run-of-mine ROM tonnes.

Cullinan saw production decrease by 5 percent to 823,619 carats mainly due to a reduced ROM grade which was partially offset by increased tailings production.

At Koffiefontein, there was a production increase of 45 percent to 50,375 carats largely owing to increased treatment of recovery tailings.

Kimberley Underground recorded a production increase of 10 percent to 126,917 carats, while the Williamson mine saw production rise 15 percent to 188,465 carats.