Petra Diamonds Reports Record Production And Revenue
July 24, 17
(IDEX Online) – Petra Diamonds reported FY 2017 production up 8 percent to 4.0 million carats from 3.7 million carats in 2016, while revenue rose 11 percent on the year to $477.0 million which are both record levels for the group.
The diamond market remained stable throughout FY 2017, with rough diamond prices on a like for like basis up about 2 percent for the year compared to FY 2016, Petra said.
Net debt as of 30 June soared to $554.4 million from $382.8 million last year. "With Capex now on a declining trend, debt levels will start to fall in FY 2018 and the company expects to become free cashflow positive during FY 2018," Petra said.
It added that FY 2018 production is expected to rise about 23 percent to 4.8 - 5.0 million carats, while guidance for FY 2019 is 5.0 - 5.3 million carats.
FY 2018 production is expected to have a marked increase in the proportion of higher value ROM carat production of around 85 percent compared with FY 2017 of 71 percent as opposed to lower value tailings carat production. This is expected to lead to an improved product mix resulting in a higher average value per carat.
"Record levels of production and revenue have been reached in FY 2017 and, whilst certain expansion programs have taken longer than expected to ramp up, we have now attained the required production levels which will see production rise again substantially in FY 2018," said Johan Dippenaar, CEO of Petra Diamonds.
"The improvement in ROM grades across our operations demonstrates the increasing contribution of undiluted ore from the new production areas. FY 2018 will mark the first year where Petra will source the majority of its underground tonnages from undiluted ore, leading to a further improvement in grades, product mix and consequent higher average value per carat, without the need for improved market conditions."