Petra trading update shows diamond market stabilising and holding firm

LONDON - DECEMBER 07:   A jeweler examines a brilliant cut 1.01 carat diamond on December 7, 2006 in London, England.  The  UN General Assembly passed a resolution on December 4, 2006 backing the Kimberley Process, a global initiative aimed at preventing "conflict diamonds" from funding warfare and civil unrest.  The issue will be highlighted by the forthcoming release of the new Leonardo Di Caprio film "Blood Diamonds"  (Photo by Bruno Vincent/Getty Images)

Petra Diamonds has revealed diamond production is up 30% as the diamond market holds firm, with prices on a like for like basis matching those realised in the period January to June 2016.

The company’s production increase to 1,097,523 carats was put down to increased contribution from undiluted ROM ore, improving ROM grades and additional tailings production from Kimberley Ekapa Mining.

Petra said it witnessed strong signs of a stabilising diamond market, with prices for the Period remaining flat when compared to the second half of the year of 2016.

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In regards to diamond sales and prices, Petra’s trade report showed diamond prices achieved in the firm’s first tender for 2017 maintained levels comparable to those realised during Petra’s second half of the year of 2016 on a like for like basis. It said product mix is expected to further improve average diamond prices as the contribution from undiluted areas increases.

Johan Dippenaar, chief executive officer for Petra, commented: “Operationally, the group has made a strong start to FY 2017 delivering close to 1.1 Mcts for Q1 and we continue to expect full year production of 4.4 to 4.6 Mcts, in line with earlier guidance.”

He added: “The newly established caves at both Finsch and Cullinan, accessing higher grade undiluted areas, are starting to meaningfully contribute to ROM production, which is continuing to ramp-up in line with expectations.”

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