Petra Diamonds Posts Large Jump in Production in Q4

(IDEX Online) – Petra Diamonds Limited reported a 24 percent jump in production to 2,015,087 carats in the six-month period ended December 31, the miner reported.

The rise was due to increased contribution from undiluted run-of-mine (ROM) ore leading to improved ROM grades, and additional tailings production from Kimberley Ekapa Mining.

The group remains on track to deliver full year production of around 4.4 Mcts to 4.6 Mcts.

Revenue surged 48 percent to $228.5 million from $154.0 million the year before due to increased sales volumes.

Diamonds sold rose 47 percent for the period to 1,910,113 carats. In line with past years, H2 is expected to be a stronger sales period, due to the timing of tenders being weighted towards the latter half of Petra’s financial year, the company said.

Rough diamond prices were flat during H1 FY 2017 on a like-for-like basis, in comparison to H2 FY 2016.

Johan Dippenaar, Chief Executive Officer, commented: “Due to the increased contribution in H1 FY 2017 from undiluted ore, we have delivered strong operational results, reporting significant increases in production and revenue. We continue to advance our expansion programs and, from this point onwards, will see a meaningful reduction in capital expenditure as the capital projects, which were first set out in 2009, come to fruition.

"Safety remains our highest priority at Petra and we are placing renewed focus on this vital area and relentlessly striving for a zero harm workplace.”