Petra Diamonds’ profit jumped in the past fiscal year as improved efficiencies and cost controls offset weaker rough diamond prices.
Group net profit after tax increased 12 percent to $66.8 million in the year that ended June 30 even as rough diamond prices fell 6 percent, the South Africa-focused miner reported. Revenue increased 1 percent to $430.9 million, driven by a higher sales volume of rough diamonds. Adjusted mining and processing costs were reduced 5.5 percent to $257.7 million. A weakening of the South African rand, meaning lower costs when reported in U.S. dollars, also boosted profit.
Despite the rise in profit, conditions were not met for the company to declare a dividend for the fiscal year. Petra will revisit the decision after the first half of fiscal 2017 with the intention to resume dividends as soon as possible, the miner said.