Petra Diamonds Limited has announced its preliminary results for the year ended June 30 2015, citing a 10% drop in revenue to US$425.0 million (£392.7m) after a “challenging” 12 months.
As a result, the company’s adjusted EBITDA was down 26% to US$139.3 million (£121.5m) and net profit after tax was also down by 33% to US$62.8 million (£54.8m).
The full year financial results were “negatively impacted by underground production being reliant on mature, diluted mining areas, as well as the weaker diamond market, though partially offset by the favourable impact of the weakening in the Rand for the year,” according to an official statement.
Despite this production grew slightly y 2% to 3.2 million carats, in line with company guidance.
Looking ahead to 2016, Petra is expected production to reach 3.3 to 3.4 million carats – an increase of 3 to 6%.
Petra Diamonds chief executive officer Johan Dippenaar said: “As already reported, FY 2015 was a challenging period, both operationally, due to the reliance of our underground mines on the mature, diluted mining areas, and also in terms of the softer diamond market, which saw lower pricing for the Year. However, the Group still recorded a number of important achievements, with increased tonnage throughput for the Year, the continued delivery of our mine expansion projects, the strengthening of our balance sheet, due to the US$300 million notes issue and increase in bank facilities, and the commencement of construction of a modern processing plant at Cullinan post Year end in Q1 FY 2016.
“While market conditions remain subdued in the short term, Petra is in a robust position given our strong balance sheet, efficient cost base and increasing operating margin profile as we start to access the new, undiluted mining areas at Finsch and Cullinan from FY 2016 onwards.”