|
|
Petra Diamonds' 1Q Revenue +27%
Production +25% Despite Industrial Action
Nov 12, 2013 4:16 AM
By Deena Taylor
|
|
|
RAPAPORT... Petra Diamonds' revenue rose 27 percent year on year to $65.1 million during the company's first quarter that ended on September 30, as higher production compensated for weaker rough diamond prices. The company sold 588,233 carats for an average price of $110 per carat, down 31 percent from $160 per carat in the same period one year earlier.
The company explained that the market was impacted by liquidity constraints in India and seasonal weaknesses. Petra noted that market conditions are improving as the Christmas season approaches and that the trend should continue for the remainder of its fiscal year. At its recent October tenders, Petra sold 442,566 carats for $55.7 million, or $125 per carat.
Petra expects production to drive growth and it maintained its guidance to mine 3 million carats in fiscal 2014. The company reported that production rose 25 percent to 816,735 carats during the first quarter, despite challenging labor conditions following industrial action at its South Africa mines.
The company's Finsch mine was the only operation unaffected by the strike, where production rose 61 percent to 517,667 carats. Production growth was driven by increased volume of finer diamonds from Finsch combined with increased recovery of smaller goods.
 Production at the Cullinan mine dropped 9 percent to 217,400 carats, mainly due to the strike. The company said it has implemented initiatives at the mine to make up for lost production.
During the period, Petra recovered two top-quality, type IIa, white diamonds weighing 126.40 carats (pictured) and 91.50 carats at Cullinan. The diamonds will be sold at the company's late November tender together with a 43-carat and a 36-carat diamond recovered at Finsch.
Petra reported that its cash balance had grown to $55.3 million as of September 30, compared with $26.2 million at the start of the quarter. Outstanding debt dropped to $2.1 million from $74.8 million. The company’s inventory increased to 483,557 carats valued at $43.2 million, compared with 348,403 carats worth $31.5 million on June 30.
Petra shares were down 1 percent to 112.9 pence in Tuesday morning on the London Stock Exchange.
|
|
|
|
|
|
|
|
|
|
Tags:
Cullinan, Deena Taylor, diamond, diamonds, Finsch, Koffiefontein, Petra Diamonds
|
|
|
|
|
|
|
|
|
|
|
|
|