Petra Diamonds Ltd. Records Zero Revenue in Q1 FY2016

(IDEX Online News) – Petra Diamonds Ltd. has announced flattish first quarter FY 2016 results, including  zero revenue (Q1 2015: $100.8 million) and a 1-percent increase in diamond production, to 842,796 carats (Q1 2015: 833,744 carats).

Petra said its results for the quarter ended September 30 were affected by several factors including the significant weakening of the South African Rand, which offset the cash flow impact of lower US dollar prices, the slowdown in China , the impact of excess polished inventory in the pipeline and reduced production at Cullinan and Williamson.

The company held its first tender of the year earlier this month at which 696,801 carats were sold, yielding $68.9 million. However, like-for-like prices dropped by 8.8 percent. In excess of 96 percent by volume and 90 percent by value of the goods on the tender were sold. Unsold parcels will be either be offered for sale at negotiated prices or rolled into the second tender, which is likely to take place in early December. Four further tenders are scheduled for the second half of FY 2016.

The company said that it remains on track for its full year production guidance of 3.3-3.4 Mcts for FY 2016 and approximately 5 Mcts for FY 2019.

“Petra’s focus remains on the maintenance of a healthy balance sheet, the tight control of costs, and the successful roll-out of our expansion plans, which will deliver the first significant input from the higher quality production areas from H2 FY 2016 onwards. These measures will assist the company to withstand uncertain market conditions,” said CEO Johan Dippenaar.