Petra Diamonds company profits in the last fiscal year that ended June 30 rose 12% to $ 66.8 million, versus $ 59.6 million a year earlier.
According to the statement by Petra, revenues increased by 1%, to $ 430.9 million, while last year it was $ 425 million.
The company owns a diamond mining operations in South Africa and Tanzania. Its production increased by 16%, to 3.7 million carats, exceeding the forecast. Last year, Petra produced 3.2 million carats.
"The company has shown strong results despite a number of challenges that it has faced during the 2016 fiscal year, among them -. Production from areas with lower diamond content in underground mines, as well as the pressure on prices, which was felt in the diamond market in the first half of the year "- said Johan Dippenaar (Johan Dippenaar), CEO of Diamonds has by Petra,
" I am particularly pleased with the continued steady progress thanks to our expansion program, which operated during the last seven years, "- he continues.
In Petra noted that diamond production in the current fiscal year is expected to rise to 4.4 - 4.6 million carats, and will continue to grow until the company stated long-term goal of about 5 million carats in the year 2018 fiscal year. It is expected to take place a year earlier than expected.
"According to forecasts, 2017 will be the first financial year in which the company will benefit from the work done (by extension) in the second quarter of this year, we intend to make our positive cash flow, and then more significantly increase it." - adds Dippenaar.
"Now we are entering the final phase of our capital expansion programs with robust balance sheet, efficient cost base and drive for success."
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Prices for rough diamonds should go down by 15%, but at first the market should stabilize, said Maxim Shkadov, president of the International Diamond Manufacturers Association (IDMA), Rapaport News.
"Prices for rough diamonds should fall to an equitable level in comparison with diamonds. However, it is worrying that if prices decline immediately, then prices for diamonds will go down again, and this cycle will never stop, he said in an October 27 telephone interview. "There is a need for stabilization in the market, because people need to understand the current trend."
According to Shkadov, who is also head of the Moscow-based and diamond-producing OJSC Kristall, diamond prices fell by about 15% from the beginning of the year and should fall by another 15% So that the diamond producers have an opportunity to receive a moderate profit. However, he stressed that a more gradual approach to pricing is necessary, while at the same time approving recent attempts to reduce the number of diamonds on the market.
De Beers and ALROSA in recent months have allowed their customers to postpone large volumes of supplies. De Beers notified the sightholders that at the site this week they can postpone until December all the stones they intended for them in November.
The market still has a large number of diamonds, which puts pressure on prices, said Shkadov. He explained that the easy conditions of bank lending in India allowed diamond producers to sell a lot of raw materials in 2013-2014 at inflated prices, Which led to the current situation with excess stocks of diamonds from their producers. According to Shkadov, manufacturers' response to the current situation was a decline in production this year by about 40%.
Shkadov expects that production will begin to recover only in the second half of 2016, in conditions of the market's striving for stabilization after the holiday shopping period.
"It will take another two to three months after the end of the season to stabilize the market," he said. "Then, as we begin to prepare for the new season, demand will start to rise again, and we can start increasing production." That production will start to recover only in the second half of 2016, in conditions of the market's striving for stabilization after the holiday shopping period. "It will take another two to three months after the end of the season to stabilize the market," he said. "Then, as we begin to prepare for the new season, demand will start to rise again, and we can start increasing production." That production will start to recover only in the second half of 2016, in conditions of the market's striving for stabilization after the holiday shopping period. "It will take another two to three months after the end of the season to stabilize the market," he said. "Then, as we begin to prepare for the new season, demand will start to rise again, and we can start increasing production."
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