Petra Diamonds Revenue -28% in H1 2016

(IDEX Online News) – Petra Diamonds Ltd., has announced that its revenue dropped 28 percent in the first half of 2016 – $154 million – down from $214.8 million in same period a year prior.

The company said that that the volume of carats sold during the period was also down – decreasing from 1,401,575 in first quarter 2015 to 1,303,051 in 2016, which represents a 7-percent decrease. Petra expects the second half of 2016 to be stronger due to the timing of its tenders – four of which are due to take place during this period.

Production across the company’s five mines increased 2 percent to 1,629,403 carats compared to 1,601,069 over the same period in 2015. At the Kimberley Underground mine, production was ramped up 17 percent.

Diamond inventory at the end of 2015 was 666,357 carats, valued at $57.4 million.

Petra said that the group’s expansion projects, including at Finsch, Cullinan and Koffiefontein are on schedule and expected to be delivered on time. The company also confirmed its 49.9 percent share of Kimberley Mines in South Africa, having entered a partnership with local tailings producer Ekapa Mining (Pty).

“We have made a good start to the year, with production of 1.6 Mcts ahead of our target for H1 FY 2016 of 1.5 Mcts, placing us in a good position to achieve full year guidance of 3.3 – 3.4 Mcts,” said Petra CEO Johan Dieppenaar.

“Importantly our expansion programmes remain on track to deliver the first significant input of undiluted ore from the new mining areas in H2 FY 2016, which will lead to improved ROM grades and a better product mix.”