27th Oct 2014 07:34
LONDON (Alliance News) - Petra Diamonds PLC Monday said its revenue grew by more than half in its fiscal first quarter, buoyed by higher production and the proceeds from the sale of an exceptional blue diamond.
In a statement, Petra said revenue for the three months to end-September rose 55% to USD100.8 million, from USD65.1 million a year earlier, as production rose 2% to 833,744 carats, its highest ever quarterly production, and it sold an 85% interest in the 122 carat Cullinan blue diamond for US$23.5 million.
It actually sold fewer carats overall. First-quarter sales were 532,250 carats, down 10% from 589,233 carats in the first quarter of its last financial year. It blamed an earlier cut-off for the first tender cycle of the current financial year and a resulting increase in inventory. It expects the increased inventory to be sold in the second quarter tender cycle.
"The diamond market is exhibiting customary seasonal softness in the post summer period, but Petra expects it to firm up as usual towards the end of the calendar year. There are no changes to full-year 2015 diamond price guidance," it said.
It added that all its expansion programmes are on track and in line with expectations.
"It is particularly pleasing to see the meaningful contribution from the smaller mines, Koffiefontein, Kimberley Underground and Williamson, as each of these operations have been ramping up output successfully. Our major expansion plans at Finsch and Cullinan are progressing as planned, with the targeted output of 3.2 million carats for FY 2015 and ca. 5 million carats for FY 2019 firmly on track," Chief Executive Johan Dippenaar said in a statement.
Petra also said that on the back of continued strong production and financial results, its lenders have agreed to increase its overall financing facilities, at reduced lending rates, by the equivalent of about USD40.4 million to about USD260 million, providing additional funding headroom, financial flexibility and further strengthening its balance sheet.
By Steve McGrath; [email protected]; @stevemcgrath1
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