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Petra Diamonds Returns to Profit in Fiscal 2013
Sep 16, 2013 5:27 AM
By Deena Taylor
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RAPAPORT... Petra Diamonds reported a profit of $27.9 million in the fiscal year that ended on June 30, 2013, compared with a loss of $2.1 million one year ago. Revenue rose 27 percent year on year to $402.7 million, as previously reported, and production increased 21 percent to 2.668 million carats. The Finsch mine helped boost overall production as this fiscal year was the first full year of mining there since the company acquired it from De Beers.
Johan Dippenaar, Petra's CEO, explained that growth was spurred by higher production, revenue and the acceleration of its expansion programs at the Finsch and Cullinan mines.
The company observed stable rough diamond markets in fiscal 2013, with less volatility compared with previous years. While the company reported flat rough prices during the first half of the year that ended December 31, prices were firmer during the second half.
Petra expects the rough diamond market to remain steady in fiscal 2014 with the potential for prices to rise due to constrained global supply, a firmer U.S. market and continued growth in China, albeit at a lower rate compared to recent years.
At the close of the fiscal year, Petra held diamond inventory of 348,403 carats valued at $31.5 million, having increased 29 percent from the previous year due to higher production levels in the fourth quarter. The company expects production to increase to around 3 million carats in fiscal 2014.
Petra diamonds owns the 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. Petra intends to sell the Sedibeng and Star operations of the Fissure mines, which are both currently on care and maintenance, while it will keep the Helam operation in its portfolio.
The company's shares remained basically unchanged at 121.75 pence in morning trade on the London Stock Exchange.
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Tags:
Cullinan, Deena Taylor, diamonds, Finsch, Petra Diamonds
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