Petra secures 55% revenue boost in Q1 FY 2015

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Company sees 2% growth in production between July and September 2014.

Petra Diamonds Limited has announced its Interim Management Statement (IMS) for the period from July 1 2014 to October 24 2014, citing a 2% boost in production volumes to 833,744 carats – the highest quarterly production in the company’s history.

The report, which covers production and sales for Q1 2015 between July 1 2014 to September 30 2014, shows a 55% increase in revenue to US$100.8 million (£62.5m), compared to US$65.1m (£40.4m) in Q1 2014.

This also includes the sale of an 85% interest in the 122ct Cullinan blue diamond for US$23.5m (£14.5m), which was recovered by the company earlier this year.

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Petra scores 75% net profit boost in annual report

Carats sold were down 10% to 532,250cts, compared to 589,233cts in 2014, owing to an earlier cut-off for the first tender cycle of FY 2015 and the resultant increase in inventory (622,910 carats versus 483,557 carats as at 30 September 2013), which will be sold in the company’s Q2 tender cycle.

Taking this continued strong production into account, Petra’s lender group has agreed to increase the Group’s overall financing facilities, at a reduced lending rate, by the equivalent of US$40.4m (£25m) to US$260m (£161.3m).

Post Q1, the 232ct Cullinan white diamond sold for US$15.2m (£9.4m) on October 24 2014.

Petra Diamonds chief executive officer Johan Dippenaar, commented: “These results demonstrate a strong performance for the Group, with record Q1 production and sales. It is particularly pleasing to see the meaningful contribution from the smaller mines, Koffiefontein, Kimberley Underground and Williamson, as each of these operations have been ramping up output successfully.

“Our major expansion plans at Finsch and Cullinan are progressing as planned, with the targeted output of 3.2 million carats for FY 2015 and 5 million carats for FY 2019 firmly on track.”

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