RapNet


Rapaport News

 

Mining

 

Advanced search
Latest Articles
Videos
Features
News
Mining
Rough Markets
Polished Markets
Manufacturing
Retail

Petra Cautious After Labor Unrest

Sales Growth Drives Return to Profit
Feb 20, 2017 11:03 AM   By Rapaport News
Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT...
Petra Diamonds’ share price fell on Monday as industrial action at its Cullinan mine forced the company to offer a cautious outlook on production.

Labor stoppages delayed the expansion program known as the C-Cut extension at the South Africa mine, the company said. The project’s commissioning has consequently been pushed back eight weeks to the end of March.

Petra is still on track to meet its production guidance of about 4.4 to 4.6 million carats for the fiscal year ending June 30, but the company “is mindful of the potential to be toward the bottom end of this range” due to the labor actions, which have since been resolved, according to a statement Monday.

“While labor relations are currently stable, there remains the potential for labor action in South Africa,” the miner added.

Petra extracts diamonds from the Finsch, Cullinan and Koffiefontein mines in South Africa, as well as the Williamson deposit in Tanzania. The company also operates the Kimberley mine in South Africa jointly with Ekapa Mining.

Combined production from the mines increased 24 percent to 2 million carats in the six-month period that ended December 31, 2016. Output from Cullinan rose 30 percent to 419,754 carats during that time.

The announcement came as the miner reported a revenue jump of 48 percent to $228.5 million in that half-year. By volume, sales grew 47 percent to 1.9 million carats, while the company recorded a profit of $35.2 million compared to a $2.2 million loss in the same period a year before.

“Signs of stabilization in the rough-diamond market are evident, with steady demand across the majority of size ranges,” the miner explained.

The exception to this improvement was in smaller, lower-value diamonds, which have come under price pressure because of the Indian government’s decision to scrap INR 500 and INR 1,000 notes – a move that sapped liquidity from medium-sized and smaller diamond companies in India. However, these categories recovered in a tender earlier this month, the statement pointed out.

Petra’s share price fell almost 5 percent in early trading on Monday before recovering to a decline of about 0.5 percent at press time.
Print Print Facebook Facebook Twitter Twitter Share Share
Tags: C-Cut, Cullinan, Cullinan Mine, Ekapa Mining, Finsch, Koffiefontein, mining, petra, Petra Diamonds, Rapaport News, Rough Production, South Africa, tanzania, Williamson
Similar Articles
StornowayStornoway to Lose Stock-Exchange Listing
Sep 22, 2019
The Toronto Stock Exchange is set to delist StornowayDiamond Corporation following...
Karowe Yields Two Massive Stones
Gem Diamonds Unearths 127ct. Rough
Sentiment Cautious as Hong Kong Show Starts
PetraPetra’s Loss Widens in Weak Market
Sep 16, 2019
Shares in Petra Diamonds slipped 7% in early trading Mondayafter the miner...
De Beers Finds Buyer for Namibia Mine
Nurturing the Next Generation of Diamantaires
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First



Call Us: 1-702-893-9400
Member License Agreement   RapNet Trading Rules & Code of Conduct    Privacy Policy  
  
twitter twitter
About Rapaport
Advertise with us