Petra Diamonds Posts Rise in Revenues and Profits

(IDEX Online News) – Petra Diamonds reported revenue up 27 percent to $402.7 million for the year ended June 30 from $316.9 million last year.

Profit from mining activity soared 34 percent to $138.6 million, while net profit after tax was $27.9 million compared with a net loss of $2.1 million last year.

The miner said that adjusted net profit after tax surged 22 percent to $48.3 million.

Its cash at bank position showed $26.2 million from $47.3 million the year before, while diamond inventories were S$31.5 million from $24.5 million in 2012.

Production soared 21 percent to 2,668,305 carats from 2,208,862 carats.

Gross resources, including reserves, rose 2.5 percent to 309.6 million carats from 302.1 million carats.

In its outlook, the firm said that some·of Petra's South African mines were affected by industrial action which started on August 29. The industrial action has ended and normal operations were expected to recommence at the affected mines from September 16.

“Based on the strong production run rate with which Petra commenced FY 2014, and partial production during the industrial action, the company remains on track for full year production to increase by about 12 percent to 3.0 million carats in FY 2014. Expansion plans remain on target to increase production to 5 million carats by FY 2019.

“The rough diamond market is expected to remain steady in FY 2014 due to constrained supply and a firmer US market, the world's major market for polished diamonds, as well as continued growth in China, albeit at a lower rate than over recent years.”

Meanwhile, Johan Dippenaar, CEO, said: "FY 2013 marked a further year of solid growth in terms of production, revenue and the underlying profitability of the group, as well as the acceleration of our major expansion programmes at Finsch and Cullinan, in line with expectations.

“We have kept our costs and capital expenditure well controlled, maintaining our robust financial position. We continue to deliver on our strategy to build a world-class diamond group, with production of circa 3 million carats expected for FY 2014, rising to 5 million carats by FY 2019."