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Petra Diamonds revenue soars 25% in Q3 results

Petra Diamonds has announced its revenue rose 25% to $120.5m (£82.9m) in the third quarter (Q3) of the 2016 financial year, when compared with the same period in 2015.

In its latest trading update for the period from 1 January to 31 March, Petra said its revenue was pushed up due to increased sales volumes and the sale of the 32.33-carat pink diamond from its Williamson mine for $15m (£10.7m).

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Despite this, revenue for the nine months to 31 March was down 12% to $274.4m (£189m) compared with the $311m (£214m) recorded in the same period of its 2015 financial year.

Production in Q3 was up 26% to 995,905 carats, compared with the 791,442 recorded last year. For the nine months, production was up 10% to 2,625,308 carats.

Petra said production during Q3 was “favourably” impacted by the Kimberley mines, which it acquired a share of 49.9% – alongside Ekapa Mining – from De Beers December last year.

Diamonds sold by the company increased by 13% to 937,526 carats, while rough diamonds prices were up 3.5% on a like-for-like basis in comparison to the average for the first six months of the financial year.

Johan Dippenaar, CEO, said: “Petra has delivered another firm production quarter and we are pleased to announce an increase in our full-year 2016 production target to 3.6m to 3.65m carats, further to the integration of the Kimberley Mines assets.

“We are excited about our partnership in Kimberley, given the potential for long-term sustainable operations to the benefit of employees and the local communities there.”

He added the firm’s expansion programmes remain on track, with the construction of a new plant at its Cullinan mine on track.

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