26th Jan 2015 07:37
LONDON (Alliance News) - Petra Diamonds PLC on Monday said two exceptional diamond sales and weakness in the South African rand offset a softer rough diamond market in the first half, as its production fell slightly but revenue rose.
FTSE 250-listed Petra said its production in the first half of its financial year to the end of December was down 2% year-on-year to 1.60 million carats from 1.63 million last year. It said it has upgraded its full-year production guidance, however, to 3.3 million carats from 3.2 million previously.
Revenue in the half was up 16% to USD214.8 million from USD184.6 million a year earlier, boosted by USD38.7 million in revenue made from the sale of two exceptional diamonds. The group said the sale of the two diamonds boosted its revenue amid softer rough diamond market conditions, and said it was getting a favourable boost from the weaker South African rand on its operating costs in US dollar terms.
Petra Diamonds said its costs are under control and in line with guidance and said its capital expenditure of USD125.2 million in the half, significantly higher than the USD85.3 million it had spent at the same time in 2013, was in line with the roll out of its fully-funded expansion plans. It maintained its full-year spending guidance.
"These are solid results, with production on track to exceed our previous full-year target of 3.2 million carats and revenue boosted by the exceptional diamond sales, despite softer market conditions," said Petra Chief Executive Officer Johan Dippenaar.
By Sam Unsted; [email protected]; @SamUAtAlliance
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