Petra Diamonds Limited has announced its Trading Update (unaudited) for the year ended 30 June 2014(the “Year” or “FY 2014”), ahead of its preliminary results for the Year (“Full Year Results”) which will be released on 22 September 2014
Production is up 17% to 3,110,823 carats (FY 2013: 2,668,305carats), above market guidance of 3 million carats (“Mcts”) and Revenue up 17% to US$472.6 million (FY 2013: US$402.7 million).
Costs remained well controlled despite the ongoing inflationary pressures experienced in the mining industry, specifically labour and electricity; further detail will be given in the Full Year Results announcement.
Capex of US$210.0 million (FY 2013: US$191.2 million), in accordance with the roll out of the Group’s expansion programmes.
Cash at bank of US$ 33.3 million (30 June 2013: US$26.2 million); this figure excludes debtors received shortly after year end of US$55.4 million (30 June 2013: US$74.8 million).
Net debt at 30 June 2014 of US$125.6 million (30 June 2013: US$120.8 million), in line with management’s expectations
A firmer diamond market was experienced in H2 FY 2014, with rough diamond prices achieved by Petra for FY 2014 either in line with or above guidance.
Recovery of an exceptional 122.5 carat blue diamond at the Cullinan mine in June 2014 , which the Company expects to sell in FY 2015
Johan Dippenaar, CEO of Petra Diamonds, commented: “FY 2014 has seen a further year of solid production and revenue growth, with the Group on track to reach annual production of circa 5 million carats by FY 2019. 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 FY 2014 and the outlook remains positive due to constrained supply and a firm US market, as well as continued growth in emerging markets.
Ref: Petra Press release Extract. www.petradiamonds.com/~/media/Files/P/Petra-Diamonds/Attachments/pdf/financial-reports/2014/14-07-28%20-%20RIS%20-%20Trading%20Update.pdf