Petra Diamonds’ revenue jumped in the first fiscal quarter due to demand for higher-quality goods.
Revenue surged 22% year on year to $80.2 million for the three months ending September 30, the miner reported Monday. Sales volume increased 7% to 626,541 carats, with the average selling price up 15% to $128 per carat, even as overall rough prices weakened.
Prices for the quarter fell about 5% compared with the previous 12 months “due to the usual seasonal weakness…partially offset by the improvement in product mix,” the miner said.
The presence of sales from the Williamson mine also inflated this year’s growth. Last year, the Tanzanian government seized a parcel of 71,654 carats of rough from that mine, resulting in zero revenue from that asset, and a company-wide sales drop of 17%. The government has still not released the parcel for sale.
Production for the first quarter climbed 21% to 1.1 million carats as higher output at the Cullinan, Koffiefontein and Williamson mines outweighed lower recovery levels at Finsch.
Petra maintained its production forecast of 3.8 million to 4 million carats for the fiscal year ending June 2019, compared to the 4.6 million carats it recovered in fiscal 2018.
Image: An aerial view of the Cullinan mine. (Petra Diamonds)