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Price Rise Lifts Petra Rough Sales
Apr 24, 2018 8:49 AM
By Rapaport News
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RAPAPORT... Petra Diamonds saw a jump in revenue in the third fiscal quarter amid a stronger rough market.
Revenue surged 44% year on year to $172 million for the three months ending March 31, while sales
volume increased 28% to 1.4 million carats, the miner reported Monday. The average selling price rose 12% to $125 per carat.
Rough prices increased 5% on a like-for-like basis at the two tenders the company held in the
quarter, compared with the July-to-December
period, Petra said.
“The diamond market remained relatively strong in the third
quarter, boosted by the continued festive retail selling season, incorporating
Chinese New Year and Valentine’s Day, which in turn led to restocking in the
pipeline and resultant good demand for purchasing of rough diamonds,” the
company said.
The miner will hold a further two tenders in the fourth fiscal
quarter, its strongest sales period in terms of carat volumes, it said.
Production for the third quarter increased 20% to 1.2
million carats, a record for the miner. Output at the Finsch mine climbed 13%
to 530,578 carats, while Cullinan spiked 56% to 354,403 carats.
Williamson production grew 40% to 72,063 carats, with output at the Kimberley asset
rising 9% to 202,632. Production at the Koffiefontein mine dropped 8% to 12,180 carats.
“The makeup of our production is transforming, with higher-value
run-of-mine production representing...82% of our carat volume,” said CEO Johan
Dippenaar. “The future focus of the company will move away from volume targets
to value optimization.”
Illegal mining activities at Petra’s Kimberley operations
during the third quarter affected production, the company noted. Petra is
currently working with the local government on an eviction order to solve the
problem. Petra expects to meet its initial production estimate of 4.6 million
to 4.7 million carats for fiscal 2018.
The company has also suffered from its inability to sell a parcel of 71,654 carats of rough diamonds that the Tanzanian government seized in September. Authorities are still holding the goods, Petra said.
The performance of the rand continues to affect Petra’s financial position, the miner also noted. A stronger local currency results in higher expenses in dollar terms.
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Tags:
Cullinan Mine, Finsch mine, Johan Dippenaar, Kimberley Ekapa, Koffiefontein, petra, Petra Diamonds, Rapaport News, Williamson Mine
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