Hiccups Can't Slow Petra Diamond Production, Profits

Petra Diamonds reported revenue up 27% to $402.7 million for the year ended June 30 from $316.9 million last year. Profit from mining activity soared 34% to $138.6 million, while net profit after tax was $27.9 million compared with a net loss of $2.1 million last year. The miner said that adjusted net profit after tax surged 22% to $48.3 million.

Production soared 21% to 2,668,305 carats from 2,208,862 carats. Gross resources, including reserves, rose 2.5% to 309.6 million carats from 302.1 million carats. The diamond company remains on track for full year production to increase by about 12% to 3.0 million carats in FY 2014. Expansion plans remain on target to increase production to 5 million carats by FY 2019.

In its outlook, the firm said that some of Petra's South African mines were affected by industrial action which started on August 29. The industrial action has ended and normal operations were expected to recommence at the affected mines from yesterday.

Petra's liquid cash account showed $26.2 million from $47.3 million the year before, while diamond inventories were $31.5 million from $24.5 million in 2012.

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