Industry News by Nemesis

Petra Boosts FY 2016 Diamond Output, Revenue Plateaus

July 26, 2016

Petra Diamonds said it registered a 16 percent leap in diamond output to 3,70 million carats in the year ended 30 June 2016 from 3,18 million carats, a year earlier. 

This was above the company’s production guidance of between 3.6 million carats and 3.65 million carats for the period under consideration. 

It attributed the improved output to increased contribution from undiluted run of mine (RoM) ore and additional production from Kimberley Ekapa Mining following the acquisition of Kimberley Mines last January. 

Petra said it was expecting to produce between 4.6 million carats and 4.8 million carats in the fiscal year 2017, an increase of between 25 and 30 percent on the fiscal year 2016 attributable production.

“Petra has recorded further strong growth, leading to record production levels for the year and the expectation that the group will reach its long-stated target of ca. 5 Mcts by FY 2018, a year earlier than previously anticipated,” said company chief executive Johan Dippenaar.

Meanwhile, the group’s revenue for the period under consideration grew 1 percent to $430.9 million compared to $425.0 million, a year earlier, mainly due to an increase in volumes sold, most notably tailings carats sold from the newly established Kimberley Ekapa Mining operation in South Africa and partially offset by softer diamond prices in the year.

However, carats sold for the year increased 9 percent to 3,45 million from 3,17 million, a year earlier.

Its operational capital expenditure for the fiscal year 2016 was about $294.2 million (excluding borrowing costs), 10 percent lower than original guidance of $326.7 million.

“Petra is fully financed to completion of its expansion programmes, all of which remain on track, and its financial position is in line with expectations, including the related debt facility covenant measurements,” said Dippenaar.


Source: Rough&Polished

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