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Petra Diamonds 3Q Sales, Output Rise in Buoyant Rough Market
Apr 26, 2016 6:45 AM
By Rapaport News
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RAPAPORT... Petra Diamonds raised its production target for fiscal 2016 as third-quarter sales jumped amid improving conditions in the rough market.
“The market has started calendar 2016 on a noticeably firmer footing, with good sales demand from the cutting and polishing segment,” Petra noted in its quarterly trading update. Steps taken by major producers to reduce supply, lower prices of rough, and increase marketing and promotions helped lift trading.
Petra’s revenue surged 25 percent to $120.5 million in the three months to March 31, with the volume of sales increasing 13 percent to 937,526 carats. Rough prices climbed 3.5 percent since the start of the year, it said in the update.
The company continues to ramp up production toward its 5 million carat target by 2019. Output across its five mines soared 26 percent to 995,905 carats in the period under review, prompting Petra to raise its target to 3.6 to 3.65 million carats for the current fiscal year. Its previous guidance was for 3.3 to 3.4 million carats this year. Integration of the Kimberley Mines acquired from De Beers in January will help boost production, it said.
Sales in the fourth quarter will likely depend on continued supply control among the major producers and stable retail demand, particularly in the U.S., the company said. As a result, the company is maintaining a cautious outlook for the rest of the year, and continues to base its sales forecast on last year’s price models.
Petra Diamonds shares plunged more than 8 percent in morning trading on the London Stock Exchange.
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Tags:
Cullinan, diamonds, Finsch, Petra Diamonds, Rapaport News
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