Its getting there......

StockMarketWire.com
Petra Diamonds swung to a first-half loss after it was dogged by industrial action and wrote down the value of its assets in South Africa.

The company booked a net loss of $117.7m, compared to a profit of $35.2m in the first half of its fiscal 2017 year.

Revenue fell slightly to $225.2m, from $228.5m.

The company booked non-cash impairment charges recognised on the carrying value of Koffiefontein and Kimberley Ekapa Mining of $118.0m, due to the effect of the strong Rand on the cost base of the assets, compounded by 'continuing operational underperformance'.

Annual revenue expectations remained in line with current consensus forecasts, the company said.

StockMarketWire.com
Petra Diamonds boosted third-quarter revenue by 44% after it produced and sold more gems.

Revenue rose to $172.0m from 1,373,771 carats sold, up from 1,069,886 carats the previous year.

Production jumped 20% to a record quarterly volume of 1,194,947 carats.

'Petra has recorded strong results in both production and sales, as well as a continued improvement in our safety performance,' chief executive Johan Dippenaar said.

'It is also important to note that the make-up of our production is transforming, with higher-value run-of-mine production representing around 82% of our carat volume. The future focus of the company will move away from volume targets to value optimisation.'

'While we are very encouraged by the operational delivery against our long-term expansion plans, risks to performance continue to relate to increased volatility in the ZAR/US$ exchange rate, grade and pricing variability at Cullinan, as well as the outlook for Williamson and the blocked diamond parcel.'

Barclays Capital today reaffirms its overweight investment rating on Petra Diamonds Ltd (LON:PDL) and cut its price target to 70p (from 85p)

Barclays Capital today reaffirms its overweight investment rating on Petra Diamonds Ltd (LON:PDL) and cut its price target to 65p (from 70p).