Petra Diamonds' underlying profits were slightly above forecast at US$77.4mln in the six months to December, said broker Peel Hunt with the beat coming from lower than expected cash operating costs, something aided by the ongoing cultural reset.
Management has reported a US$5.9m charge to cover the remediation, compensation and repair works for the Williamson tailings breach, a sum that we suspect is lower than many investors expected.
The reported loss of US$17.6m comes after the Williamson charge mentioned above.
Peel Hunt has a target price of 105p.