Petra Diamonds has reported results for the year ended June 30, 2017 (FY2017), showing that revenue was up 11% to $477 million year-on-year, but net profit was down 69% to $20.7 million year-on-year. According to Gem Konnect, the company’s debt has risen to $555.3 million from $382.8 million last year.
Production for the period went up 8% year-on-year to 4 million carats, but financial results “were negatively impacted by the delayed ramp-up of the expansion programmes, rising on-mine cash costs and the stronger rand versus the dollar for the year”. However, FY2018 has started “solid” according to the company, and the projection for 4.8-5 million carats in FY 2018 and 5-5.3 million carats by FY 2019 has remained unchanged.
Additionally, Petra resumed operations at the Williamson mine in Tanzania after a 4-day halt. Operations were stopped after Tanzanian officials at Dar es Salaam airport confiscated a Petra consignment of 71,645-carat of diamonds. The diamonds were sourced from the Williamson mine, of which Petra owns 75%, and the government the remaining 25%. The diamonds were being exported to Antwerp, but Tanzanian officials claim they had been undervalued. Discussions with the Tanzanian government are ongoing, according to Petra.
