Price Rise Lifts Petra Sales

RAPAPORT... Petra Diamonds saw a jump in revenue in the third fiscal quarter amid a stronger rough market.Revenue surged 44% year on year to $172 million for the three months ending March 31, while salesvolume increased 28% to 1.4 million carats, the miner reported Monday. The average selling price rose 12% to $125 per carat. Rough prices increased 5% on a like-for-like basis at the two tenders the company held in thequarter, compared with the July-to-Decemberperiod, Petra said. "The diamond market remained relatively strong in the thirdquarter, boosted by the continued festive retail selling season, incorporatingChinese New Year and Valentine's Day, which in turn led to restocking in thepipeline and resultant good demand for purchasing of rough diamonds," thecompany said. The miner will hold a further two tenders in the fourth fiscalquarter, its strongest sales period in terms of carat volumes, it said. Production for the third quarter increased 20% to 1.2million carats, a record for the miner. Output at the Finsch mine climbed 13%to 530,578 carats, while Cullinan spiked 56% to 354,403 carats.Williamson production grew 40% to 72,063 carats, with output at the Kimberley assetrising 9% to 202,632. Production at the Koffiefontein mine dropped 8% to 12,180 carats. "The makeup of our production is transforming, with higher-valuerun-of-mine production representing...82% of our carat volume," said CEO JohanDippenaar. "The future focus of the company will move away from volume targetsto value optimization." Illegal mining activities at Petra's Kimberley operationsduring the third quarter affected production, the company noted. Petra iscurrently working with the local government on an eviction order to solve theproblem. Petra expects to meet its initial production estimate of 4.6 millionto 4.7 million carats for fiscal 2018.The company has also suffered from its inability to sell a parcel of 71,654 carats of rough diamonds that the Tanzanian government seized in September. Authorities are still holding the goods, Petra said.The performance of the rand continues to affect Petra's financial position, the miner also noted. A stronger local currency results in higher expenses in dollar terms.