Petra Diamonds Ltd. (LSE:PDL) put out an unaudited trading update for the six months ended December 31, 2014.
Petra Diamonds Ltd. (LSE:PDL) put out an unaudited trading update for the six months ended December 31, 2014. Though production fell 2 percent during the period, the company’s release emphasizes that it has enjoyed “exceptional” sales of the gems.
Further highlights include:
- Production down 2% to 1,601,069 carats (H1 FY 2014: 1,634,576 carats); Petra revises its full year production guidance from ca. 3.2 Mcts to ca. 3.3 Mcts.
- Revenue up 16% to US$214.8 million (H1 FY 2014: US$184.6 million); results for H1 include sales proceeds for two exceptional diamonds for combined revenue of US$38.7 million.
- While the market for rough diamonds has been softer than usual in H1, the impact on Petra has been mitigated by the exceptional diamond sales noted above. The weaker Rand is also currently having a favourable effect on Petra’s operating costs in US Dollar terms.
- Costs remain well controlled and in line with guidance.
- Capital expenditure (‘Capex’) of US$125.2 million (H1 FY 2014: US$85.3 million), in accordance with the roll out of the Group’s fully funded expansion programmes; no change to FY 2015 guidance.
- Robust financial position as at 31 December 2014 with net debt reduced to US$45.8 million (31 December 2013: US$108.8 million), cash at bank of US$129.6 million and debt facilities undrawn and available to the Group of US$66.9 million.
- Progressive dividend policy adopted; maiden dividend of 2p per share, to be paid for the full 2015 financial year.