Petra Diamonds Reports Soaring Revenue and Production

(IDEX Online) – Petra Diamonds Limited reported that Q3 revenue jumped 44% to $172.0 million from 1,373,771 carats sold (Q3 FY 2017: $119.1 million from 1,069,886 carats sold).

Revenue for nine months to 31 March 2018 was 14% to $397.3 million from 3,184,924 carats sold, (Q3 FY 2017: $347.6 million from 2,979,999 carats sold).

Revenue for FY 2018, however, continues to be impacted by the inability to sell the blocked Williamson parcel of approximately 71,000 carats, the miner said.

Rough diamond prices achieved during the two tenders in Q3 are up around 5% on a like-for-like basis in comparison to the average for H1 FY 2018.

Q3 production soared 20% to 1,194,947 carats (Q3 FY 2017: 999,768 carats) representing record quarterly production for the miner; run-of-mine (ROM) production for Q3 increased 29% to 981,201 carats (Q3 FY 2017: 760,916 carats).

ROM carat production contributed around 82% of the firm’s total carats recovered during the Period (Q3 FY 2017: around 76%), in line with the company's focus on value rather than volume production.

Production for the nine months to 31 March 2018 was up 13% to 3,403,003 carats (nine months to 31 March 2017: 3,014,856 carats). The company maintains full year production guidance of ca. 4.6 - 4.7 Mcts.

Johan Dippenaar, Chief Executive, commented: "Petra has recorded strong results in both production and sales, as well as a continued improvement in our safety performance. It is also important to note that the make-up of our production is transforming, with higher value ROM production representing ca. 82% of our carat volume. The future focus of the company will move away from volume targets to value optimisation.
 
"While we are very encouraged by the operational delivery against our long-term expansion plans, risks to performance continue to relate to increased volatility in the ZAR/US$ exchange rate, grade and pricing variability at Cullinan, as well as the outlook for Williamson and the blocked diamond parcel."