16th Sep 2013 08:43
LONDON (Alliance News) - Petra Diamonds Limited Monday said it saw a six-fold increase in its full-year pretax profits as the company's expansion programme increased production and sales.
The diamond mining company with operations in Tanzania, Botswana and South Africa said its pretax profit increased to USD52.5 million from USD8.4 million for the twelve months ended June 30.
The company said its sales increased 27%, to USD402.7 million from USD316.9 million due to increased volumes being mined as the company continues its expansion programme and the company sold a 25.5 carat blue diamond for USD16.9 million in May.
The company managed to increase production 21% to 2.7 million carats from 2.2 million carats as its new Finsch diamond mine in South Africa added to volumes. Petra said it expects to achieve a full-year 2014 production increase of about 12% to 3.0 million carats.
Industrial action across South Africa in the previous year hit production for miners in the area. Petra said industrial action that started on August 29 has now ended, with normal operations expected to recommence at the company's South Africa mines on Monday.
On August 12, Petra Diamonds provided an update on its operating parameters and detail of its capital expenditure plans to stay within its financing facilities while improving its cashflow valuation.
"We have kept our costs and capital expenditure well controlled, maintaining our robust financial position. We continue to deliver on our strategy to build a world-class diamond group, with production of circa 3 million carats expected for FY 2014, rising to 5 million carats by FY 2019," Chief Executive John Dippenaar said in a statement.
Petra Diamonds shares were up 0.90 pence to 121.76p Monday morning.
By Tom McIvor; [email protected]; @TomMcIvor1
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