Petra Diamonds (LON:PDL) said the market for rough diamonds strengthened in recent months and that these firmer conditions are expected to continue for the first half of this year.
In the longer term, a positive outlook for the diamond market is supported by supply constraints, strong emerging markets growth and a recovery in the US market, the FTSE 250 company added.
The outlook comments came as Petra reported a net profit of US$28.4mln for the six months to end December, compared with a loss of US$15.2mln in the year-earlier period, on a 19% rise in revenue.
Production rose 31% to 1.6 mln carats (Mcts) and the company said it remains on track to meet full-year guidance of about 3.0Mcts for fiscal 2014.
Petra said it will consider starting dividend payments from fiscal 2016 based on its current operations and expansion plans, stated production growth, diamond prices and other relevant factors.