Petra Diamonds Announces its Trading Update for Year Ending June 30, 2016

Petra Diamonds (LSE:PDL) has announced its trading update for the year ending June 30, 2016 together with an updated analyst guidance through to June 30, 2017.
As quoted in the press release:

FY 2016 HIGHLIGHTS

·     FY 2016 production up 16% to 3.7 Mcts (FY 2015: 3.2 Mcts), above Company guidance of 3.6 – 3.65 Mcts.

·     FY 2016 revenue up 1% to US$430.9 million (FY 2015: US$425.0 million), mainly due to an increase in volumes sold, most notably tailings carats sold from the newly established Kimberley Ekapa Mining (“KEM”) operation, partially offset by softer diamond prices in FY 2016.

·     Rough diamond prices on a like for like basis down ca. 6% for the Year, compared to FY 2015. The market showed signs of recovery and stabilisation during H2 FY 2016.

·     Total FY 2016 operating costs for SA operations increased in ZAR terms mainly due to inclusion of KEM from 18 January 2016. Absolute costs remained in-line with expectations despite ongoing inflationary pressures. The weakening in the Rand for the Year had a positive impact on the Dollar reported operating costs; further detail will be given in the Prelim Results announcement.

·     FY 2016 Operational Capex (excluding capitalised borrowing costs) of US$294.2 million (FY 2015: US$252.0 million).

·     Cash at bank at Year end of US$46.1 million (30 June 2015: US$166.2 million); this figure excludes debtors from the June diamond tenders received shortly after Year end of US$60.2 million (30 June 2015: US$57.6 million).

·     Net debt at 30 June 2016 of US$387.4 million (30 June 2015: US$172.1 million); Petra expects to be within the required covenant ratios for the measurement period as at 30 June 2016.

Click here to read the full press release.