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Petra Swings to $2M Loss on Drop in Rough Prices
Feb 22, 2016 9:40 AM
By Rapaport News
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RAPAPORT... Petra Diamonds swung to a loss of $2.2 million in the first
half that ended December 31 from a profit of $39.1 million a year earlier as
rough prices dropped.
Prices
achieved by the miner dropped about 20 percent over the last 18 months, Petra
chief executive officer Johan Dippenaar said in a presentation to investors
February 22. A statement by the company showed average tender prices at three
of its four South African mines were lower in the last six months of 2016
compared with the twelve months to June 30. Prices at the Williamson mine in Tanzania
increased if exceptional diamonds are taken into account, but decreased without
them.
"While
our financial results have been impacted by the lower diamond prices achieved
in comparison to the prior period, our operations maintained a healthy profit
margin from mining activities of 36 percent due to the robust economics of our
mines, as well as the favorable effect of the weaker rand on our cost base,” Dippenaar
said.
The miner operates
the Cullinan, Finsch, Koffiefontein and Kimberley Underground mines in South
Africa. It also recently jointly acquired the country’s Kimberley Mines from De Beers together with South Africa’s Ekapa Mining.
Revenue fell
28 percent year on year to $154 million. Production increased 2 percent to 1.6
million carats. The company forecast production will increase from 3.2 million carats in the last fiscal year to between 3.3 million and 3.4 million carats in the twelve months that
will end June 30, 2016. Production guidance for fiscal 2019 is 5 million carats.
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Tags:
Cullinan, Finsch, Kimberley mines, Kimberley Underground mines, Koffiefontein, mining, Petra Diamonds, Rapaport News, results, South Africa, tanzania
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