Petra Diamonds (LON:PDL) has released strong Q3 FY 2016 production numbers with overall production up 26% YoY to 996kcts following the acquisition of the Kimberley Mines tailings operations. Consequently full year guidance has been increased from 3.3-3.4mcts to 3.6-3.65mcts.
As a result of higher production, sales increased by 13% YoY to 938kcts and revenue was up 25% YoY to US$121m; revenue also benefited from the sale of a 32ct pink diamond for US$15m. Rough diamond prices were up 3.5%pa on a like for like basis as the diamond market has shown signs of recovery as inventories have been drawn down alongside a weaker US dollar.
PDL’s cash position remains largely unchanged at US$39m versus US$42m in the prior quarter. PDL’s net debt position increased marginally from US$324m to US$396m QoQ.