Announcing an update on trading for the three month period ended March 31, 2017 (Q3 FY2017), Petra Diamonds Ltd reported that production was flat at 999,768 carats (Q3 FY 2016: 995,905 carats), and revenue declined year-on-year by 1% to US$119.1 million (Q3 FY 2016: US$120.5 million).

The Company said however that ROM production for Q3 increased 18% to 760,916 carats (Q3 FY 2016: 646,850 carats) further to ROM grade improvements as a result of the ongoing ramp-up of underground expansion projects. Q3 tailings and open pit volumes were impacted by unseasonably high rainfall in both South Africa and Tanzania.

It also stated that the Q3 figures did not include any revenue from Exceptional Diamonds. Last year, during the comparative period, revenue included US$15.0 million from Exceptional Diamonds, so excluding this amount, revenue increased 13%.

Petra also noted that rough diamond prices for the quarter were up ca. 2% on a like-for-like basis in comparison to the average for H1 FY 2017.

For the first nine months of the fiscal, production rose 15% to 3,014,856 carats (nine months to 31 March 2016: 2,625,308 carats), and  revenue was up 27% to US$347.6 million, including US$10.9 million from Exceptional Diamonds, (9M FY 2016: US$274.4 million, including US$25.0 million from Exceptional Diamonds). It said that excluding Exceptional Diamonds, revenue increased 35%.

Petra held cash at bank at 31 March 2017 of US$66.2 million (31 March 2016: US$39.0 million), diamond inventories of US$49.3 million (31 March 2016: US$54.3 million) and had diamond debtors of US$37.9 million (31 March 2016: US$46.0 million).

Johan Dippenaar, Chief Executive Officer, commented:

"Further progress has been made with our expansion programmes during the Period, as evidenced by the higher ROM grades achieved as a consequence of the increased contribution from undiluted ore.

"The significant strengthening of the Company's balance sheet following the recent debt restructuring, as well as the positive signs we are seeing in the diamond market, position us well as we continue to ramp up production from our capital programmes."

The Company said that underground expansion programmes remain in line with expectations. Commissioning of the new Cullinan plant commenced towards the end of Q3 FY 2017, with initial production expected during May 2017 and full commissioning planned to be achieved by the end of Q4 FY 2017. 

The Group maintained its full year production guidance of ca. 4.4 mn cts.