20th Feb 2014 09:39
LONDON (Alliance News) - Petra Diamonds Ltd Thursday said it swung to a pretax profit in its first-half on increased production, lower costs and major sales.
The diamond mining company with operations in Tanzania, Botswana and South Africa posted a pretax profit of USD42.2 million for the six months ending 2013 from a pretax loss of USD14.9 million the previous year.
The company said its revenues increased 19% to USD185.5 million from USD156.3 million as the company increased production and sold five stones, each at prices exceeding USD1 million during the period, including a 126.4 carat stone that was sold for USD8.5 million in December.
Petra Diamonds also lowered its costs 16% to USD143.2 million from USD170.6 million as better currency conversion rates and the beginning of tailings production from the company's Cullinan mine in South Africa helped company finances.
The company increased production during the half-year by 31% to 1.6 million carats compared from the same period in 2012 and said it is on track to achieve its goal of 3.0 million carats for the full-year, with higher carat sales expected in its second-half.
Petra Diamonds announced the sale of an exceptional 29.62 carat blue diamond for USD25.6 million earlier this month.
The company added that it now expects to consider commencing dividend payments from its full-year 2016.
Petra Diamonds shares were down 1.3% to 154.65 pence Thursday. However, the company's share price has increased over 40% in the last three months.
By Tom McIvor; [email protected]; @TomMcIvor1
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