RAPAPORT… Petra Diamonds’ shares fell more than 15% in early trading Monday after the
miner reported a significant slide in rough-diamond prices at its flagship
Cullinan asset.
The average price plunged 31% to $96 per carat at the miner’s
South African asset in the first fiscal half ending December 31. That compares with an average of $140 per carat for the nine and a half years spanning July 2009 to December 2018, the miner said Monday.
The company’s net debt increased to $557.2 million as of December 31 compared to $538.9 million at
September 30.
Even so, sales for the first fiscal half climbed 8% to $207.1 million from three tenders, while sales volume jumped 15% to 1.7 million carats.
Production rose 10% to 2 million carats as Petra continued to ramp up output at
a new portion of Cullinan.
Petra maintained its production forecast of 3.8 million to 4
million carats for the full fiscal year ending June 30, compared to the 4.6 million
carats it recovered in fiscal 2018.
Image: Inspection at Cullinan prior to production. (Petra Diamonds)
Price Drop at Cullinan Dents Petra
The Bottom Line
- Petra Diamonds’ average rough-diamond price at Cullinan fell 31% to $96 per carat in the first half of the fiscal year.
- Despite the price drop, sales revenue rose 8% to $207.1 million and sales volume increased 15% to 1.7 million carats.
- Net debt grew to $557.2 million by December 31, while production increased 10% to 2 million carats, with a full-year forecast of 3.8 to 4 million carats.
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