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Petra Diamonds FY Revenue +27%
Production +21% on Finsch Mine Acquisition
Jul 30, 2013 5:29 AM
By Avi Krawitz
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RAPAPORT... Petra Diamonds' revenue rose 27 percent year on year to $402.7 million in the fiscal year that ended on June 30, 2013. Growth was driven by a production increase of 21 percent to 2.668 million carats mainly due to the Finsch mine contributing to a full year of production after the company acquired it from De Beers during the previous fiscal year.
Petra Diamonds' share of Finsch production rose 28 percent to 1.412 million carats during the year. Revenue from the mine increased 17 percent to $160.6 million, despite a 13 percent decline in the average price achieved to $120 per carat.
The company noted that rough prices were flat during the first fiscal half that ended on December 31, 2012, but prices strengthened in the second half. However for the full year, the average price achieved fell at most of its mines.
Overall price performance for the full fiscal year of 2014 is expected to remain steady due to constrained supply and a firmer U.S. market, as well as continued growth in China, albeit at a lower rate than over recent years, the company stated.
Petra Diamonds expects production to increase to about 3 million carats in fiscal 2014 and it stated that it is on track to achieve 5 million carats by fiscal 2019. Production growth will be spurred by expansion projects currently underway at its Finsch, Cullinan and Koffiefontein mines in South Africa. The company also owns the Kimberley underground and Fissure mines in South Africa and the Williamson mine in Tanzania. Of the Fissure mines, Petra Diamonds is looking to sell the Sedibeng and Star operations, which are currently on care and maintenance, while it will keep the Helam operation in its portfolio.
The company reported that its cash balance fell to $26.2 million from $37.4 million one year earlier. Outstanding diamond debtors tripled to $75 million due to the June tender, while Petra Diamonds’ inventory rose 57 percent year on year to 348,403 carats.
Shares in Petra Diamonds rose 0.7 percent to 118 pence a share in Tuesday morning trading on the London Stock Exchange (LSE).
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Tags:
Avi Krawitz, Cullinan, diamonds, Finsch, kimberley, Petra Diamonds, Rapaport
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