Petra Diamonds Ltd., the London-based diamond miner with mining operations in South Africa and Tanzania, reported its FY 2017 revenue up 11% to $477.0 million (FY 2016: $430.9 million), though its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $157.2 million from $164.3 million in the year before due to delayed ramp-up of the expansion programs and higher cash costs. The miner's net profit after was down 69% to $20.7 million (FY 2016: $66.8 million).
Government authorities in Tanzania have seized a shipment of diamonds belonging to London-based Petra Diamonds, saying the miner under-declared the value of its mineral exports. On August 31, customs seized a parcel containing 71,654 carats rough gems at the Dar Es Salam airport as they were being exported to Antwerp by Williamson Diamonds, in which Petra holds a 75% stake and the Tanzanian State 25%.
As anticipated, while Petra Diamonds achieved record levels of production and sales in FY 2017, with production up 8% to 4.0 Mcts (FY 2016: 3.7 Mcts) and revenue up 11% to US$477.0 million (FY 2016: US$430.9 million), investors remain worried as the company missed its production and revenue guidance by 8-9% due to the slower than anticipated build-up of its expansion programs across its operations. Furthermore, the company pushed back its production guidance and unveiled higher than expected spending and debt, causing its share price to tumble.
As Petra Diamonds approaches the close of financial year 2017 (ending 30 June 2017), it has released a market update revising its production and revenue guidance down by 8-9%, despite the fact that the miner is on track to achieve record revenue and production figures in FY 2017. "However, due to the slower than anticipated build-up of its expansion programmes across its operations, production is now estimated to be ca. 8-9% lower than guidance of ca. 4.4 million carats. As a result, revenue is expected to be ca.
The South African government has raised the minimum threshold for black ownership of mining companies to 30 percent in a surprise move that weakened the rand and knocked shares in the London-quoted mining groups Anglo American and Petra Diamonds. Shares in Anglo American have fallen sharply after South Africa announced changes to its mining regulations. They dropped 57p, or more than 5 percent to £10 after South Africa’s mineral resources minister Mosebenzi Zwane said miners have to raise their black-owned stakes to 30% from 26% under a revised version of its mining charter.
Petra Diamonds reports its rough diamond output in Q3 2017 (January 1 - March 31 2017) remained steady at 999,768 carats, from 995,905 carats a year earlier; however, the company arrived there by increasing Run of Mine (ROM) production 18% to 760,916 carats while tailings production fell 32% to 238,852, in part due to a planned reduction at Finsch and in part due to heavy rain restricting surface recovery.
Diamond industry analyst Paul Zimnisky, author of the Zimnisky Global Rough Diamond Price Index, provides his thoughts on the recent struggles of diamond mining stocks. Given what is now being widely considered as a recovery and stabilization of the diamond industry last year, an optimistic post-election U.S.
Diamond industry analyst and author of the Zimnisky Global Rough Diamond Price Index, Paul Zimnisky, takes us on, "A Trip Through the Diamond Industry in March 2017." If there is one trip you make this weekend, we recommend this one.
The month of March will again see a full schedule of rough diamond tenders and sales in Antwerp.
Petra Diamonds Limited has announced strong results for the six months to 31 December 2016 (H1 2017), with rough diamond production, revenues and carats sold all seeing substantial increases. Revenues were up 48% to US$228.5 million (H1 FY 2016: US$154.0 million) or US$217.6 excluding exceptional diamonds, with net profit after tax up more than 35% to US$35.2 million (H1 FY 2016: US$2.2 million loss) and an EBITDA margin of 38% (H1 FY 2016: 31%), indicating increased profitability. Petra's carats sold in the first half jumped 47% to 1.9 Mcts.
Petra Diamonds, the London-listed mining group focused on Southern Africa that operates four mines in South Africa and one in Tanzania, has reported that for the six months ended 31 December 2016 (H1 2017), rough diamond production, revenue and rough carats sold increased significantly year-over-year, continuing the upward trend established earlier in the year, though rough prices remained flat.
Ilan Solomons takes an in-depth look for Creamer's Engineering News at the progress Petra Diamonds is making on the $295 million C-Cut Phase 1 expansion project, which will initially extend its Cullinan diamond mine’s life span by about 15 years. The C-Cut project will consolidate the areas the company is mining from eight down to three and should reduce production costs by approximately 30% over the next two or three years.
Petra Diamonds, the London-listed mining group focused on Southern Africa that operates four mines in South Africa and one in Tanzania, has reported that Q1 2017 (1 July to 21 October 2016, covering production and sales from 1 July 2016 to 30 September 2016) production is up 30% to 1,097,523 carats (Q1 FY 2016: 842,796 carats), due to increased contribution from undiluted run-of-mine (ROM) ore, improving ROM grades and additional tailings production from Kimberley Ekapa Mining.
Petra Diamonds has released its annual report for FY 2016, with 16% higher rough diamond production at 3.7 million carats leading to only a 1% gain in total revenue at $430.9 million, and a 1% increase in adjusted net profit at $63.6 million. Chairman Adonis Pouroulis states, "While we achieved 16% higher production during the year, revenue was only up 1% as the higher volumes (albeit of lower value goods from the Kimberley tailings operations) were offset by rough diamond prices on a like-for-like basis, being down circa 6% in comparison to FY 2015 ...
Johan Dippenaar, the CEO of South Africa-based Petra Diamonds, gives an overview of the history and operations of the mining firm as it heads towards completing a seven-year, $1 billion expansion program that will triple its production. Dippenaar, in London to meet investors after presenting Petra’s 2016 financial results to investment firms, explained to the Daily Telegraph that Petra’s business model is based on acquiring old mines from De Beers and extending their life. “These mines – Cullinan, Finsch, Kimberley – that’s what started De Beers,” he says.
Petra Diamonds Limited announced that revenue edged up just 1% to $430.9 million in its preliminary results for the year ended June 30. Net profit after tax, however, jumped 12% to $66.8 million. The miner, which operates four former De Beers mines in South Africa and one in Tanzania, also reported that net debt more than doubled from last year to $384.8 million.
"An invasion of more than one thousand illegal diamond miners – zama-zamas – in South Africa’s Northern Cape town of Kimberley is threatening the viability of London-listed Petra Diamonds (Petra) operations and, if left unchecked, could also have serious negative consequences for South Africa’s overall diamond mining and beneficiation industries", writes Miningmx.
Petra Diamonds has found a 138.57-carat Type IIa, D color diamond at the Cullinan mine in South Africa. The diamond will be offered for sale as part of Petra's next sales process in late August in Johannesburg.
Paul Zimnisky, author of the Zimnisksy Global Rough Diamond Price Index, writes that the 2016 first half diamond production trends of De Beers and Alrosa - good for 40.7% and 34.7% of global market share value respectively - show diamond production declining as sales climbed significantly compared to H1 2015. These results are consistent with the strategies announced at the start of the year, and were certainly buoyed by a more favorable than expected global economy, the U.S.
Petra Diamonds, with interests in five South African and one Tanzanian mine, has reported that production for FY 2016 was up 16% to 3.7 Mcts (FY 2015: 3.2 Mcts), above Company guidance of 3.6 – 3.65 Mcts. FY 2016 revenue was up 1% to $430.9 million (FY 2015: $425.0 million), mainly due to an increase in volumes sold, most notably tailings carats sold from the newly established Kimberley Ekapa Mining operation (KEM).
Petra Diamonds today announced that Petra and Ekapa Mining have entered into a joint venture agreement, which combines the respective operations, owned and operated by the joint venture partners in the Kimberley area, into an unincorporated joint venture named the Kimberley Ekapa Mining Joint Venture. The respective operations comprise: Petra’s Kimberley Underground mines; Ekapa Mining's tailings operations; and Kimberley Mines tailings operations, owned 50.1% by Ekapa Mining and 49.9% Petra.
Petra Diamonds announced that the exceptional 121.26 carat white diamond recovered at the Cullinan mine in South Africa has sold for $6.0 million ($49,480 per carat), as part of the company's June sales process in Johannesburg. The stone was bought by a joint venture comprising Nemesis International and Golden Yellow Diamonds, two leading diamond manufacturers who specialise in large diamonds.
Petra Diamonds Limited said the stone is a Type II diamond of exceptional color and clarity, and is an outstanding example of the large, high quality diamonds for which the mine is known. The diamond will be sold in the last tender of Petra's 2016 financial year which is currently underway in Johannesburg. "This, along with a number of other high-quality stones that will also be included in the tender, will deliver an improved product mix at the mine in the last quarter of FY 2016," the miner said in a statement.
"It’s a blue streak," writes JCK's Rob Bates, reporting on yet another exceptional blue diamond - this time the 24.8-carat Cullinan Dream - that will be hitting Christie's Magnificent Jewels auction block in New York on June 9, 2016. "Extracted from the legendary Cullinan mine in South Africa in 2014, the Cullinan Dream is the largest Fancy Intense Blue diamond ever to be offered at auction," reads Christie's announcenent.
"As April 2016 concludes, the diamond industry has without question improved relative to a year ago, however, current industry data and commentary paints a mixed picture as to whether market fundamentals have in fact stabilized enough to support a new wave of sustainable growth continuing into the near-to-medium-term", writes Paul Zimnisky, author of the Zimnisky Global Rough Diamond Price Index to introduce his in-depth analysis of global diamond trade demand, supply and pricing in 2016.
Fresh off the heels of a promising Q1 2016 production and trading update announcing a 26% increase in production and 25% rise in revenues, Petra Diamonds' CEO Johan Dippenaar has joined other mining executives in warning that it’s still too early to tell if the industry’s rebound from the worst year since the financial crisis will last, writes Thomas Biesheuvel for Bloomberg. “Prices are up, the market definitely has a positive feel about it,” Dippenaar sa
Petra Diamonds Limited announced that it has recently recovered and sold an exceptional 32.33 carat pink diamond from the Williamson mine in Tanzania for US$15.0 million (US$463,965 per carat), as well as retaining an interest in the polished proceeds (Petra will receive 10% of the value uplift of the polished). The diamond was bought by Golden Yellow Diamonds on behalf of M.A. Anavi Diamond Group, a leading diamond manufacturer and specialist in large and unique coloured diamonds.
The sale of a 23.16-carat pink diamond last December from the Williamson mine in Tanzania, owned by Petra Diamonds, boosted the average value per carat of stones from the operation by more than 20%. The average value per carat jumped to $367 in the first half of the company's fiscal year from $303 a year earlier, allafrica.com reported. The pink diamond was sold for $10.05 million; Petra will receive 20% of the proceeds from the sale of the polished gem. Excluding exceptional diamonds, the average value per carat from the mine's production was $241.
Petra Diamonds Ltd has announced that its revenue for the six months ended December 31, 2015 slumped 28% to $154 million compared to $214.8 million over the same period in the prior year. The volume sold was down 7% to 1,303,051 carats (H1 FY 2015: 1,401,575) and were lower than the 1,629,403 carats produced (H1 FY 2015: 1,601,069 carats) due to the seasonal timing of Petra's tenders.
"The illustrious story of the impeccable blue diamond began in the 17th century when Jean Baptiste Tavernier, a French diamond merchant, traveller and pioneer of diamond trade with India, first set eyes on a unique and unforgettable diamond in India. The “superfine deep blue” that so captivated Tavernier was later sold to King Louis XIV in 1669 as the famous French Blue, used to adorn the crown of Queen Marie Antoinette.
"A century of first-hand experience in the art of managing markets is helping diamond producers accomplish what the rest of the mining industry has been unable to during the commodity collapse: shut down supply," writes Thomas Biesheuvel for Bloomberg Business. With rough diamond prices dropping 18 percent last year, world supply was reduced by a quarter as the biggest producers, De Beers and Alrosa, cut output and sales. That compares with the situation in commodities such as iron ore and copper, "where companies like Rio Tinto Group and BHP Billiton Ltd.
In its 25 January "Trading Update", Petra Diamonds reports that while it actually increased its overall output 2%, revenue was down 28% to $154m in the six months to December, including the sale of the 23.16 carat pink stone from Williamson for US$10.05 million. Rough diamond prices dropped 9% year-on-year. The significant drop in revenues came despite a drop in the value of the South African Rand, which helped cushion the blow for the company.
JCK's Rob Bates writes the fascinating story behind acquiring and polishing the world's most expensive diamond, the Blue Moon, as told by Ehud Laniado, chairman of Cora International, which bought the stone. To recap: in November, Sotheby’s sold the Blue Moon, the 12.03 ct. internally flawless vivid blue cushion cut, for $48.5 million, setting a world record for a diamond at auction. Before that, the stone, discovered by Petra Diamonds at the Cullinan mine in South Africa, was a 29.62 ct.
De Beers has announced the completion of the previously announced sale of the historic Kimberley mines in South Africa. The sale was of all assets related to the mine, including the tailings resources. The mines were acquired by Petra Diamonds Limited in a consortium with Ekapa Mining (Pty) Ltd, an established Kimberley-based diamond tailings producer, which bought the Kimberley mines from De Beers Consolidated Mines Proprietary Limited.
Kieron Hodgson, commodities analyst for British corporate stockbroker and investment bank Panmure Gordon, articulates their bullish position on diamond mining stocks and prices for 2016 and beyond.
Mining Weekly reports that a month after De Beers Consolidated Mines (DBCM) sold its Kimberley Mines in South Africa, the National Union of Mineworkers’ (NUM’s) Kimberley Mines Branch demanded a review of the sale process, with a march planned against the mine sale on January 14. In December, DBCM sold its Northern Cape assets to a consortium comprising Kimberley-based surface diamond mining company Ekapa Mining and London-listed Petra Diamonds.
Financial Times provides a clear overview of the year that was in the global diamond industry, from stagnation and falling revenues at the retail and mining ends, to downright suffering in the 'midstream' (manufacturing). The plight of the midstream is summed up as follows: “The raw [rough] diamond price is still high but the polishers [like us] have to sell cheaper because of the drop in demand,” said Chirag Kakadia of Sheetal, an Indian diamond polisher, speaking at a Hong Kong trade show. “We are forced to purchase higher but sell lower.
While diamond miners on the whole have had a rough year, as weak consumer demand coupled with a supply glut and a credit crunch among diamond traders have caused the price of stones ranging from 0 to 4 carats (ct) to fall considerably, it was also a year of exceptional diamond discoveries.
Petra Diamonds recently closed its second tender of H1 FY 2016 (1 July to 31 Dec 2015), with 606,080 carats sold yielding US$86.2 million in revenues, including the sale of the 23.16 carat pink stone from Williamson for US$10.05 million, and the unsold parcels from the company's first tender of H1 FY 2016. All goods were sold, with the exception of some 3,200 carats with an estimated value of around US$166,000. Pricing was flat in comparison to Petra's first tender of FY 2016, but
Petra Diamonds Ltd. has announced the sale of the exceptional 23.16 carat pink diamond recovered from the Williamson mine in Tanzania in November, with Petra receiving US$10,050,000 (US$433,938 per carat) for the rough stone, as well as retaining a 20% interest in the sales proceeds of the polished. The diamond was bought at its tender in Antwerp by Golden Yellow Diamonds on behalf of M.A.