Petra Diamonds secures 3.2m carats in FY 2015 despite production challenges


Petra Diamonds Limited saw its production rise 2% to 3.2 million carats in the year ended June 30 2015, with production also expected to rise in the full year 2016.

The company is now on track to meet its target of five million carats per anum by full year 2019.

The company, which is in a ‘transitional period’ due to underground challenges at its Cullinan mine (pictured), saw its revenue fall 10% to $425m in FY2015 mainly due to lower average diamond prices than in FY2014.

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Total FY 2016 on-mine cash costs are expected to increase by 8% on FY2015 for the company’s South African operations and 4% its Tanzanian operation. This is largely due to inflation increases, coupled with increased diamond production.

Johan Dippenaar, CEO of Petra Diamonds, commented: “Despite the challenging operating conditions being experienced by Petra in this transitionary period, we have recorded further growth in production to 3.2 million carats in FY 2015, which represents record production for the Group. It is encouraging to see that measures to manage the grade profile at Cullinan have yielded successful results in the last quarter, and are expected to continue to assist until undiluted ore meaningfully contributes to our production profile from H2 FY 2016.

“The required contracts have been entered into with respect to the construction of the new, modern processing plant at Cullinan, an exciting development at this world class mine. Additionally, our various expansion programmes remain on track to meet our long term target of ca. 5 million carats by FY 2019.”

Tags : Diamondsfinancial resultsFY 2015Petra Diamondsproduction
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