23rd Jan 2014 09:47
LONDON (Alliance News) - Petra Diamonds Ltd Thursday said production rose by 31% in the first half of the year, it remains firmly on track to meet full-year production forecasts, and it is expecting strong revenue in the second half of the year.
Petra credited the timing of its diamond tenders and the planned sale of an impressive 29.6 carat blue diamond recovered at its Cullinan mine in South Africa.
The diamond mining company and a supplier of rough diamonds to the international market said that production increased by 31% to 1,635,716 carats for the six months ended December 31, 2013, up from 1,247,522 carats a year earlier.
It said revenue was up 19% for the first-half to USD185.5 million, having sold 1,417,694 carats in diamonds, compared with USD156.3 million the prior year. It also said it is expecting strong revenue growth in the second half of the year, due to the timing of Petra's diamond tenders, as carat sales are weighted to the second half.
Petra said it will sell the huge blue diamond in the second half of the year for a "great value". Numis Securities analyst Cailey Barker has estimated the sale will fetch USD15 million to USD20 million for Petra.
The group said the rough diamond market firmed up in the second quarter, after a weak first quarter, at it expects the firmer market to continue.
It said that costs remain well controlled and in line with guidance, and capital expenditure for the first-half of USD85.3 million, is in line with its expansion programmes and full year guidance. It also said its capital expansion plans remain fully funded.
Shares in Petra Diamonds were down 5.0% at 128.10 pence per share Thursday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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