[miningmx.com] – SHARES in UK-listed diamond producer, Petra Diamonds, were 10.5% lower in early trade following the publication of third quarter figures in which revenue fell 31% to $96.1m and the firm’s management downgraded its full-year production forecast.
Group production would be 3.2 million carats compared to previous guidance of 3.3 million carats principally owing to lower grade at its Cullinan and softer conditions in the rough diamond market.
“The current reliance on production from the mature mining areas at our underground mines is expected to change over the coming quarters as the Company passes through this transitional period and starts to access undiluted ore,” said Johan Dippenaar, CEO of Petra Diamonds.
The company also said it would stick with its decision to pay a maiden dividend of 2 pence per share in its 2015 financial year.
“Whilst mildly disappointing, this is a transition year for Petra as it is currently going through mature diluted mining areas particularly at Finsch and Cullinan and after this year fresh ore sources will increasingly contribute that will support rising volumes and falling costs,” said Investec Securities in a morning note.
