Petra Diamonds received a welcome respite from their recent struggles with debt and low prices for small diamonds across the global market. It arrived in the form of a 100.83 carat D-Colour Type II gem quality diamond, which followed another recent recovery of a 6.12 carat Type II blue stone at its Cullinan Diamond Mine in South Africa.
Petra Diamonds has appointed highly experienced mining vet Richard Duffy as the new CEO of the company, which has seen its debt pile up amid expansion efforts and watched its shares tumble in recent months. CEO Johan Dippenaar announced his departure last September after 12 years at the helm and has remained with Petra as they sought a suitable replacement. Duffy will officially take over on 1 April 2019.
The state of the diamond mining industry as 2019 enters full swing is concerning to many throughout the trade. The fall in prices of small, lower-quality diamonds, a staple of many miners, had participants at the Africa Mining Indaba last week concerned about the sustainability of their operations if the market does not correct this year, with some even concerned about their survival.
Petra Diamonds, owner of one of the world’s most famous diamond mines - the Cullinan mine in South Africa - could be about a decade away from clearing its multi-million-dollar debts, according to Reuters. As Emma Rumney and Barbara Lewis explain, Petra bought Cullinan in 2008, "aiming to breathe new life into the South African mine renowned for yielding the largest rough gem diamond ever found - 3,106 carats - and being the world’s main source of rare blue diamonds.
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.
In a cost-cutting move, mid-tier miner Petra Diamonds has unburdened itself of the Helam mine in South Africa for a total price of $14 (ZAR 200). Petra put the Helam mine on care on maintenance during FY 2015, following previous attempts to source a suitable purchaser and has conducted no mining activities since then.
Petra Diamonds has appointed Mrs. Varda Shine and Mr. Bernard Pryor to its Board as Independent Non-Executive Directors, with effect from 1 January 2019, in accordance with the Petra nomination committee's three-year succession plan. The plan is in line with Petra’s development from a phase of intensive capital expenditure and expansion to a focus on steady-state operations. Varda Shine has been in the diamond industry for 30 years and was previously CEO of De Beers Trading Company.
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.
Despite its annual revenue rising 25% and its profit from mining activities up 33% to US$205.1 million, the miner recorded significant losses ($203.1 million) and Petra Diamonds' CEO Johan Dippenaar will step down after 12 years at the helm following a slump in the company’s share price this year. The miner was forced to raise $170m in capital from shareholders last May to shore up its heavy debt, which has run up over the $600 million mark and accelerated the company’s share price fall this calendar year, which is down by 43%.
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.
Petra Diamonds late last week announced that it had sold its stake in the Kimberley Ekapa Mining joint venture (KEM JV) to its namesake partner, Ekapa Mining, for about 300 million rand ($22 million).
In a landmark deal - hailed as a first ever in South Africa - Kimberley’s illicit miners, known as 'zama-zamas', have now been legitimized. Deputy Minister of Mineral Resources Godfrey Oliphant issued the artisanal miners with mining permits in an agreement aimed at curbing the rapid growth of illegal mining which has been spurred on by rising unemployment. The newly-licensed informal miners have been given access to 500 hectares of land owned by Kimberley Ekapa Mining (KEM JV), a joint venture between Petra Diamonds and Ekapa Mining.
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.
Petra Diamonds Ltd., the London-based diamond miner with five mining operations in South Africa and Tanzania, has reported that Q1 FY 2018 (for the period from July 1 to Oct. 20 2017, covering production and sales from July 1 to Sept. 30 2017) production was down 4% to 1,053,817 carats (Q1 FY 2017: 1,097,523 carats) mainly due to a planned reduction in tailings production at Finsch and Kimberley Ekapa Mining Joint Venture (“KEM JV”).
Independent analyst and consultant on diamonds and the mining industry, and publisher of the Zimnisky Global Rough Diamond Price Index, Paul Zimnisky has published an in-depth article, "The Discovery of Newsworthy Diamonds is Increasing", analysing the rise of noteworthy diamond recoveries in the past five years in particular. Reprinted from Paul Zimnisky Diamond Analytics, courtesy of Paul Zimnisky.
Petra Diamonds Limited announced on Thursday that it has reached agreement with the National Union of Mineworkers (NUM) with regards to salaries at the Finsch and Koffiefontein operations in South Africa and employees will report for their normal duties on 29 September 2017. A day later, Petra announced the Kimberley Ekapa Mining JV operation has signed the same three year wage agreement as that already signed by the company's other South African operations. The mine will now revert to normal operations following conclusion of the labour disruption.
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.
As the company had already warned, Petra Diamonds is currently facing strikes from workers at two of its mines in South Africa prior to the finalisation of its new wage agreement for its operations in South Africa, the company announced in a press release. Petra confirms that since last night it is, "experiencing labor disruption at its Finsch mine and there is also disruption underway at its Kimberley Ekapa Mining JV operations." Reuters adds that members of South Africa’s National Union of Mineworkers (NUM) are on strike over pay, regional secretary Cornelius Manhe said, after mo
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).