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Petra Diamonds Lowers Production Target
Aug 15, 2012 5:26 AM
By Avi Krawitz
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RAPAPORT... Petra Diamonds has lowered its production forecast for fiscal 2013 and said it expects the rough diamond market to remain under pressure in the short term.
The company set a production target of 2.85 million carats for the year ending on June 30, 2013, down from its previous guidance of 3.1 million carats. The lower outlook was influenced by a revision of the mining plan at its Finsch mine in South Africa and lower production levels at the Williamson mine in Tanzania.
Petra’s production reached 2.2 million carats in fiscal 2012. The company noted that it remains on schedule to achieve annual production of 5 million carats by fiscal 2019.
Petra revised the mining scope at Finsch, after acquiring the mine in September 2011, in order to improve the long-term economics and to optimize the production plan. This will reduce its expansion capital expenditure by approximately $42 million in fiscal 2013 and by $71 million combined during the three subsequent years, the company reported.
Petra said it expects rough prices to remain flat for the rest of this year, but to rise in 2013 due to the effects of production decreases by major producers and the restocking of inventory in the pipeline, combined with a gradual improvement in global financial conditions.
While current rough prices remain under pressure, Petra's management continues to believe that the outlook is positive in the medium term, according to the company's statement.
Shares in Petra Diamonds were up 1 percent to 100.8 pence in Wednesday morning trade on the London Stock Exchange.
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Tags:
Avi Krawitz, diamonds, Finsch, Petra Diamonds, Rapaport, Williamson
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