Welcome to the new morningstar.co.uk! Learn more about the changes and how our new features help your investing success.

Petra Diamonds Revenue Sinks On Sales, Prices Fall; Production Rises

(Alliance News) - Diamond miner Petra Diamonds Ltd said Monday first-quarter revenue sank sharply ...

Alliance News 21 October, 2019 | 9:52AM
Email Form

(Alliance News) - Diamond miner Petra Diamonds Ltd said Monday first-quarter revenue sank sharply as sales and prices fell, despite production edging higher on the year prior.

For the three months ended September, diamond production rose 0.9% to 1.08 million carats from 1.07 million carats a year prior.

Diamonds sales, however, fell 3.7% to 603,626 carats from 626,541 the year prior, and prices were 4% lower on the three months prior. Revenue fell 23% to USD61.6 million from USD80.2 million a year before.

"We have reported another quarter of solid operational performance putting us on track to achieve our full year production target of circa 3.8 million carats," Petra Chief Executive Officer Richard Duffy said.

"The diamond market remains challenging, however we will benefit from the sale of the exceptional 20.08 carat Type II blue diamond from Cullinan recovered at the end of the quarter," Duffy added. "The implementation of Project 2022 is now under way, targeting USD150 million to USD200 million free cashflow over the next three years. We are expecting benefits to be realised from the second half of 2020 and will provide regular updates on our progress."

Shares in Petra were 2.2% lower at 7.90 pence in London on Monday.

By Ahren Lester; ahrenlester@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

Email Form

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Petra Diamonds Ltd 8.25 GBX -2.94 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites