Petra Diamonds Ltd posts 63% jump in revenue to $151.7 million in H1

Petra Diamonds Ltd reports revenue up 63 percent to $151.7 million for the six months to 31 December, 2012 from $93.0 million a year earlier.

The firm said that profit from mining activity was up 26 percent on the year to $41.2 million from $32.8 million.

Its net loss after tax dropped to $15.2 million from a $26.7 million loss last year, while its adjusted profit after tax came to $11.5 million from $15.3million last year.

Cash at bank as of December 31, 2012 was $38.2 million compared with $45.1 million last year, while diamond inventories rose to $45.4 million from $38.1 million last year

Production was up 31 percent to 1,247,522 carats from 953,553 carats in the same period last year.
Capital expenditure was $92.1million from $56.7 million, and was in line with planned capital expansion programs.

Petra and its Black Economic Empowerment partners are conducting a sales process for its Fissure Mines (Helam, Sedibeng and Star), which are no longer core to its portfolio. "The disposal process is progressing and the company will provide a further update when appropriate," it noted.

Petra said as per its previous guidance, carat sales are expected to be substantially higher in H2 than in H1 due to the seasonal timing of Petra tenders (five tenders are held in H2, as opposed to three tenders in H1).

"Assuming no material softening in diamond prices, the company therefore expects considerably higher revenues for H2 FY2013," the firm said.

The first tender of H2 achieved $62.1 million achieved from the sale of 401,159 carats.

The rough diamond market is expected to remain stable in the second half, with the firmer trend confirmed at the company's first tender of H2.

Petra's Chief Executive Officer Johan Dippenaar said, "Petra enters the second half of FY 2013 in a strong position to continue its robust long-term growth trajectory, with fully funded expansion programmes progressing as planned, well controlled costs and significantly higher sales expected in H2 due to seasonal tender timing. Our FY 2019 target of 5 million carats remains on track."