By GIFT NDOLWANE
JOHANNESBURG – PETRA Diamonds has recorded a revenue increase of 48 percent to US$228,5 million for the six months ended December 31 thanks to increased sales volumes.
Production was up 24 percent to over 2 million carats (Mcts) with the group remaining on track to deliver full year production of 4,4 – 4,6 Mcts.
Meanwhile, underground expansion projects remain on track with Finsch’s Block 5 SLC and Cullinan’s C-Cut Phase 1 delivering initial production during the period as evidenced by the improving run-of-mine (ROM) grade profiles.
Commissioning of the new Cullinan Plant is to commence towards the end of the third quarter of this year.
Expansion and sustaining capital expenditure (Capex) was US$1349 million in the six months ended December 31, representing 60 percent of total forecasted Capex for FY 2017, in line with guidance and demonstrating the continued decline in the Capex profile.
Net debt of US$465,4 million was in line with levels reported in Q1 FY 2017.
Johan Dippenaar, Chief Executive Officer of Petra says due to the increased contribution in the first half of 2017 from undiluted ore, the company has delivered strong operational results, reporting significant increases in production and revenue.
“We continue to advance our expansion programmes and, from this point onwards, will see a meaningful reduction in Capex as the capital projects, which were first set out in 2009, come to fruition.”
Jersey-headquartered Petra has operations in South Africa and Tanzania and an exploration programme in Botswana.
– Guardian