Half-year diamond production from Petra Diamonds LTD (LON:PDL) rose by 10% to just over two million carats, when set against the corresponding period a year ago.
Carats sold during the six months to 31 December was also up, by 15% to 1.73mln. That led to an increase in revenue to US$207mln, up from US$192mln in 2018.
READ: Petra Diamonds shares lose their shine as decline in diamond prices overshadow improved revenues
However, it wasn’t enough to turn profitable, as adjusted net losses rang in at US$4.5mln against the US$7.2mln adjusted net profit returned in the second half of 2018.
Overall net losses did drop, from US$117mln in the first half of the 2018 fiscal year, to US$54mln this time round.
But it wasn’t enough to save the job of chief executive John Dippenaar, whose departure had been widely flagged, after a US$178mln rescue capital raising was required in March 2018.
Current net debt stands at US$559.3mln, which puts it on a par with another continually ailing company, Petropavlovsk PLC (LON:POG), which has spent years unable to escape the drag of its overly onerous debt burden.
As it stands, existing cash flow is expected to cover interest payments, but uncertainties abound, in particular around Petra’s Williamson mine in Tanzania, a country which has lately developed an unwholesome reputation as a place to go mining.
New boss named
In a separate statement, the group said its new chief executive will be Richard Duffy, a former Anglo American and AngloGold Ashanti Limited man. Long-standing chairman Adonis Pouroulis, the original driving force of the Petra in the early days, thanked Dippenaar for his efforts.
“We are deeply grateful to Johan Dippenaar for all of the work he has done over the past 14 years to lead Petra through a long period of significant growth and establishing the company as a leading independent diamond producer."
In a note to clients, analysts at RBC Capital commented: “Our initial take on H1 FY19's financials is that these are OK with EBITDA +10% vs. RBCe.”
“More importantly,” they added, “We think the appointment of new CEO Richard Duffy is a positive given his impressive experience in mining, Africa and finance.
“Similarly, small positive pricing increases in first tender of H2 should be welcomed.”
The analysts left their estimates for Petra Diamonds unchanged for now and reiterated a ‘sector perform’ rating on the stock with a price target of 4,000p.
In afternoon trading, Petra Diamonds’ shares were 7% higher at 2,856p.
-- Adds analyst comment, share price --