Petra Diamonds’ Production Up 25 Percent in Latest Quarter

Petra Diamonds Ltd. (LSE:PDL) provided its interim management statement for the first quarter of the 2014 fiscal year, commenting that during that period it produced 816,735 carats, a 25-percent increase from the year-ago period. Its revenue for the quarter came in at US$65.1 million, up 27 percent from the $51.1 million achieved in Q1 of the 2013 fiscal year.

Other highlights include:

• The Group’s second tender of FY 2014 closed in Q2 FY 2014 and recorded revenue of US$55.7 million (442,566 carats); cumulative revenues for FY 2014 to date now stand at US$120.8 million.
• Two exceptional white stones of 126.4 carats and 91.5 carats were recently recovered at Cullinan; both stones are examples of the sizeable Type IIa diamonds that the Cullinan mine is known for and are considered to be of top colour and quality. The Company has also recovered a number of other high quality stones in Q2 FY 2014, and these ‘specials’ will enhance the average prices achieved at the Company’s late November tender.
• The diamond market exhibited weaker price performance in the post summer period, but Petra now expects a firmer market through to calendar year end and in H2 FY 2014. Further to the increased recovery of higher value stones in Q2 (as noted above), combined with improved market conditions, Petra maintains its overall guidance for average prices for full year FY 2014.
• At Finsch (due to the plant changes previously announced) grades are exceeding guidance, resulting in a lower average price per carat due to the increased recovery of smaller goods, but importantly an increased overall revenue per tonne, in line with management’s strategy.

Click here to read the full Petra Diamonds Ltd. (LSE:PDL) press release.