Petra H1 Production Down 2%

CEO Johan Dippenaar

(IDEX Online News) – Petra Diamonds Limited today (Monday) announced that production for the first half of its financial 2015 year was down 2 percent compared to H1 2014. Production decreased to 1,601,069 carats from 1,634,576 carats a year earlier.

Revenue was up 16 percent to $214.8 million (H1 FY 2014: $184.6 million). The results for the first half of the year include sales proceeds from two exceptional diamonds that had combined revenue of $38.7 million.

Petra said that while the market for rough diamonds has been softer than usual in H1, the impact has been mitigated by the exceptional diamond sales. In addition, the company said that the weaker Rand is having a favorable effect on its operating costs in US dollar terms.

“These are solid results, with production on track to exceed our previous full year target of 3.2 million carats and revenue boosted by the exceptional diamond sales, despite softer market conditions,” said Petra CEO Johan Dippenaar.

He added that 2015 is a transitionary period as it marks the last financial year in which the company will be so reliant on production from the mature mining areas at Finsch and Cullinan. From FY 2016 onwards, the company expects to see significant and increasing input from undiluted ore, which is both higher grade and higher margin.

The company said it was in a “robust financial position” as of 31 December 2014, with net debt reduced to $45.8 million (31 December 2013: $108.8 million), cash at bank of $129.6 million and debt facilities undrawn and available to the group of $66.9 million.