JOHANNESBURG (miningweekly.com) – LSE-listed Petra Diamonds increased its production for the 2014 financial year by 17% to 3.11-million carats – above market guidance of 3-million carats.
The increase in production was mostly owing to production increases at its Finsch mine, in the Northern Cape, where production rose 33%, and at the Williamson mine, in Tanzania, where output rose 15%.
The Koffiefontein mine, in the Free State, and the Kimberley Underground mine, in the Northern Cape, also achieved production increases of 45% and 10% respectively.
However, the production increases were partially offset by production reductions at the Cullinan and Helam operations.
"The 2014 financial year has seen a further year of solid production and revenue growth, with the group on track to reach annual production of around 5-million carats by the 2019 financial year,” Petra CEO Johan Dippenaar commented in a statement on Monday.
Further, the diamond miner’s revenue rose 17% to $472.6-million, while costs remained well controlled, despite the ongoing inflationary pressures in the mining industry, specifically relating to labour and electricity.
Carats sold increased by 12% during the year, to 3.13-million carats, in line with the higher output.
Capital expenditure for the year amounted to $210-million, up from $191.2-million in the prior year. This was in line with the roll-out of the company’s expansion programmes.
The company had $33.3-million in cash, while net debt stood at $125.6-million as at June 30.
“We have also recorded further progress with our expansion programmes, which remain on schedule and on budget. Petra has experienced a firmer diamond market during the second half of the 2014 financial year and the outlook remains positive due to constrained supply and a firm US market, as well as continued growth in emerging markets,” Dippenaar said.