18th Aug 2014 07:05
LONDON (Alliance News) - Petra Diamonds Ltd said Monday it expects an increase in diamond production in the coming year and said it remains on track to meet its five-year target, though it said capital expenditure in its South African operations will rise in 2015.
The FTSE 250-listed diamond mining firm said it expects production in the year to June 30, 2015 to hit 3.2 million carats, up 3.2% on the 3.1 million carats produced in the year to June 30.
The company also said that, in line with previous plans, the increased contribution from undiluted run-of-mine ore from full-year 2016 onwards will accelerate growth in carat production. Run-of-mine ore is mined ore of a size that can be processed without further crushing.
Petra also said it remains on track to hit its production target of 5 million carats per year by full-year 2019.
Elsewhere, the company said its full-year 2015 capital expenditure for its South African operations will be approximately ZAR1.9 billion, up ZAR300 million, or 19%, against previous guidance. This is due to changes in the scope of production activities at its Finsch and Koffiefontein mines.
It said capex to the full-year 2019 is fully funded through its cashflow and existing debt facilities.
At the open Monday, Petra Diamonds shares were up 1.1% at 192.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Petra Diamonds