Petra Diamonds has announced it is open to offers for (parts of) the company, after a strategic review of mounting debts, now at US$650 million. Only last year, Richard Duffy took over from former CEO Johan Dippenaar, with the task to turn around the troubled miner's balance sheets. The Covid-19 pandemic now foils the ongoing optimization and restructuring introduced by Duffy, as mines were forced to shut down and the global diamond market came to grinding halt.
Mid-tier miner Petra Diamonds has been keeping us up to date with regards to the impact on the company of the global COVID-19 pandemic, unfortunately reporting that they experienced depressed and opportunistic bidding for its diamonds at its fifth sales cycle of FY 2020, particularly in the larger size and higher quality, greater value categories. Petra therefore chose to only sell a portion of its South African goods, representing approximately 75% by volume and 50% by value.
Petra Diamonds reported full-year revenue below analysts’ estimates on Monday and said it expects next year’s production to be slightly lower, as it struggles with a diamond market hit by weak demand and lack of easy credit. The London-based miner with operations in South Africa and Tanzania said that revenue decreased 6% to US$463.6 million (FY 2018: US$495.3 million) for the year ended 30 June 2019, reflecting a weaker diamond market.
South Africa-focused miner Petra Diamonds has seen its shares tumble 27% since Monday's announcement of its H1 2019 results, despite an 8% increase in sales and a 10% rise in production. The culprit? Near-historical low prices earned from its rough diamonds from its flagship Cullinan mine. Prices achieved from the miner's Cullinan goods slumped 31% compared to last year, earning just $96 per carat, and compared to a nine-year average of $140 per carat from 2009 to 2018, the miner said.
The GIA (Gemological Institute of America) has developed an illustrated booklet, “Selecting Gem Rough: A Guide for Artisanal Miners,” to help small-scale miners learn more about the quality and classification of the gems they recover, and ultimately to obtain greater market value. As Russel Shor explains, the two pilot projects GIA initiated with Pact, a Washington, D.C.-based non-governmental development organization with offices in Tanzania, are having an impact on these miners' lives.
Petra Diamonds, with mining operations in South Africa and Tanzania, has released a promising and much-needed set of results from Q1 2019 (July 1 to September 30), reporting a 21% increase in diamond production and a 22% rise in revenue in the last three months.
Petra Diamonds posted a 21% rise in revenue to $576.4 million for the twelve months to June 30 from $477 million a year earlier, citing higher diamond prices (+2% on like-for-like basis) and production (+15%); but the miner worried investors by saying it expects to produce 4.6 million to 4.8 million carats in 2019, well below the 5.0-5.3 million carats it forecast in July last year.
South African diamond producer Petra Diamonds reported a major revenue increase in its third quarter (Jan 1 - March 31 2018) driven by record production in the first three months of 2018. The miner said revenue for the quarter climbed 44% to $172 million from 1,373,771 carats sold, compared to $119 million from 1,069,886 carats sold a year earlier.
Petra Diamonds Ltd said Monday its earnings as well as revenue fell slightly in its first half as core earnings fell 8 percent, despite a rise in production, as the miner was hit by industrial action in the form of a Q1 strike in South Africa, the inability to sell the blocked Williamson parcel (71,654 carats still being held by the Tanzanian government) and the strengthening ZA Rand against the USD, which the company says had a combined impact of approximately US$18 million.
Petra Diamonds announced in a trading update (unaudited) for the six months ended 31 December 2017 (H1 2018) its production was up 10% to 2,208,056 carats (H1 FY 2017: 2,015,087 carats), in line with H1 guidance of 2.2 - 2.3 Mcts. This represents record production for any six month period for the company. Revenue, however, was down 1% to US$225.2 million (H1 FY 2017: US$228.5 million), mainly due to the Government of Tanzania confiscating a parcel of stones from the Williamson mine (ca. 71,000 carats), claiming Petra had undervalued the goods.
London-listed Petra Diamonds said on Wednesday it had received authorization from the Tanzanian government to resume diamond exports and sales from the Williamson mine. Shares in Petra Diamonds climbed more than 12% from two-year lows following the annoucement. The company said the timing and process for the next diamond export to the company’s office in Antwerp and the sale would be finalized between the company and the government. Petra said no resolution had been reached over the 71,654.45 carat shipment from the Williamson mine that was blocked for export this month.
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%.
GIA (Gemological Institute of America), together with international development organization Pact, has launched a pilot study to test a new rough gem guide. The guide was developed specifically to offer basic gemological and market knowledge for artisanal miners in gem-producing regions. The illustrated booklet, available in English and Tanzanian Swahili, was distributed to approximately 45 women miners in the Tanga region of Tanzania. “This project is at the very core of GIA’s mission,” said GIA President and CEO Susan Jacques.
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.
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 ...
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.
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.
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 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.
Petra Diamonds has announced it has recovered a 23.16 carat pink diamond of "exceptional colour and clarity" from its Williamson mine in Tanzania. The company said this is the "most significant recovery" by Petra from the mine to date. "Pink diamonds are only found in a handful of mines throughout the world and their rarity ensures that they are one of the most highly coveted of all the fancy colours," the company said in a statement. The diamond will be offered for sale in Antwerp as part of its December tender process.
South Africa should consider cooperating with other countries in the Southern African Development Community (SADC) region to bring about diamond beneficiation opportunities since its beneficiation aims match those of SADC members such as Botswana, Namibia, Angola, Zimbabwe and Tanzania, said De Beers Consolidated Mines executive chairperson Barend Petersen. “We need to consider the benefits that we can derive as a region and individual countries if we collaborate to establish SADC as a diamond beneficiation hub,” he said at South Africa’s first diamond Indaba.
In a move to make the mining industry more attractive and create greater transparency, Tanzania's authorities launched a mining license e-portal, The Online Mining Cadastre Transactional Portal, allowing companies to search, submit bids and pay application fees for mining licenses online. The platform was officially inaugurated on September 1st.
In an interview with Rough&Polished Africa Editor-In-Chief, Mathew Nyaungwa, Tanzania’s Tanga Small Scale Miners Association says it is looking at possibilities of exporting the stones on their own, therefore cutting out the middle-men. The association represents 14 small scale miners, each of which has their own Primary Mining License, and a co-operative red garnet mining site they mine together.
The average price per carat for rough goods from Letšeng in the first three tenders of this year was $2,146 per carat compared with $2,140 in the fourth quarter of 2014. “It is pleasing to see that the prices achieved for the first three Letšeng tenders of 2015 are on a par with those of Q4 2014, despite a noticeably weaker overall market for Q1 2015 as reported by other diamond producers,” said Gem Diamonds CEO Clifford Elphick.
Tanzania's minerals commissioner Paul Masanja said the fourth Arusha Gem Fair, being held this week, was a culmination of the 2009 Mineral Policy that seeks to promote the country’s ambitions of becoming the hub for gemstones in Sub-Sahara Africa.
He also said the Tanzanian government intends to “hasten” the contribution of the gemstone industry to socio-economic development of the country.