Cullinan diamond South Africa

PETRA CUTS 2018 DIAMOND PRODUCTION FORECAST

Petra Diamonds has cut its diamond production forecast for the fiscal year 2018 – from the previous 4.8 million to 5 million carats to an updated production forecast of 4.6-4.7 million carats. According to CEO Johan Dippenaar, quoted in Rough & Polished, the updated forecast is “mainly due to lower grade diamonds” recovered from the Cullinan mine in South Africa.

 

Petra’s first half output for the fiscal year 2018 jumped 10% year-on-year to 2.2 million carats – “the highest level achieved for any half year period for the group”, according to Dippenaar. Revenue was down 1% year-on-year to $225.2 million, mainly due to Williamson’s first parcel not being sold during the period. Petra sold 1.81 million carats during the period – down 5% year-on-year, “also impacted by Williamson’s first parcel not being sold”.

 

According to Dippenaar, “Petra’s stated strategy is to focus on value as opposed to volume production, which is particularly pertinent to diamond operations, as not all carats are of equal value”.

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