Petra Diamonds Limited has announced its trading update (unaudited) for the six months ended 31 December 2015, ahead of the publication of the Company’s Interim Results for the Period on 22 February 2016.
Despite a 2% increase in production to 1,629,403 carats, compared to 1,601,069 carats in the same period last year, revenue for the first six months of the financial year fell by 28% to $154m (£108m).
According to the report Petra Diamonds Ltd has sold 7% less diamonds during this period – 1,303,051 carats compared with 1,401,575 carats in the first half of the 2015 financial year. However, the company, in line with past years, the company expect the second half of the year to be a stronger sales period due to timing of tenders.
Elsewhere, rough diamond prices were down 9% on a like-for-like basis compared to last year, but the expected improvement in product mix has favourabky impacted the average value per carat achieved for each of the company’s operations.
Chief executive officer, Johan Dippenaar, comments: “We have made a good start to the year, with production of 1.6 Mcts ahead of our target for H1 FY 2016 of 1.5 Mcts, placing us in a good position to achieve full year guidance of 3.3 – 3.4 Mcts.
“Importantly our expansion programmes remain on track to deliver the first significant input of undiluted ore from the new mining areas in H2 FY 2016, which will lead to improved ROM grades and a better product mix. Also, the construction of the new plant at Cullinan is on track, and we look forward to the significant benefits this new plant will bring to bear at the mine. As always we remain focused on operational delivery, while maintaining a tight control of our cost base.”