Petra Diamonds production over 2mn cts!
Petra Diamonds reported Trading Update for the H1; Six Months ended 31 December 2019, ahead of the publication of the Company's Interim Results for the Period on 17 February 2020. The report says, H1 production up 3% to 2,070,240 carats (H1 FY 2019: 2,019,147 carats).
Petra is currently on track to meet or exceed FY 2020 production guidance of ca. 3.8 Mcts, as some of the Project 2022 throughput benefits are starting to deliver. H1 revenue down 6% to US$193.9 million from 1,743,807 carats sold (H1 FY 2019: US$207.1 million from 1,736,357 carats sold), mainly due to lower diamond prices and the previously reported adverse product mix at Finsch and Williamson, partially offset by the sale of the exceptional blue diamond from Cullinan.
Petra Diamonds continued to improve as the midstream looks to replenish inventory. Early indications are that rough pricing has improved modestly to date in Q3 FY 2020. All the Project 2022 work streams are being implemented and are progressing well.
The throughput work stream (comprising 75% of the Project 2022 target) has contributed to the improved production performance and assisted in the delivery of a record level of ROM tonnes mined in H1 FY 2020.
Richard Duffy, Chief Executive of Petra Diamonds, commented: "I am very pleased with the progress made in implementing Project 2022 across our operations and at corporate level. The buy in to this project from all of our Petra employees and contractors has supported the strong operational performance across all sites, resulting in us achieving our highest level of ROM tonnes mined and carats recovered over the last six months, and has positioned us to meet or exceed full year guidance.
"It is also encouraging that rough diamond pricing has modestly improved moving into our third quarter. The health of the market will depend on continued supply discipline from the majors as well as macro-economic conditions.
"Lastly, I would like to welcome Thashmi Doorasamy to the Petra executive team. Thashmi will assume the new role of Group Human Resources and Public Affairs Executive, effective 1 February 2020, which now also completes our Executive Committee."
