Johannesburg - Petra Diamonds Ltd said it could pay its maiden dividend earlier than expected, after higher prices for the larger number of rough stones it unearthed helped it post a 47 percent jump in full-year core earnings.
The miner, which has five producing mines in South Africa and one in Tanzania, said it was on track to mine about 3.2 million carats in the current fiscal year and expected to see higher prices for rough diamonds.
Prices for natural rough diamonds could rise by up to 10 percent this year as demand picks up, according to the Antwerp World Diamond Centre.
“We expect the rough diamond market to continue to strengthen in fiscal year 2015 due to constrained supply, robust US demand as well as further growth in demand from emerging markets such as China and India,” Petra said.
The increasing appetite is due to improved credit conditions in India, the world's biggest diamond polishing market, and a rise in disposable incomes in the hands of China's burgeoning middle class.
Petra now expects growth in carat production to accelerate from fiscal year ending 2016 as this would be its last year of relying largely on stones mined from mature working areas.
Unlike other commodities, diamond miners cannot increase output at will as no new ore bodies have been found since early 1990s, forcing companies to dig deeper in their ageing mines.
Petra has a long-term goal of increasing production to 5 million carats by its 2019 financial year.
Adjusted core earnings rose to $187.7 million in the year ended June 30, from $127.6 million a year earlier. Revenue grew by 20 percent to $471.8 million.
Full-year production increased by 17 percent to 3.1 million carats in the full year, marginally ahead of market expectations of 3 million carats, Petra said.
The diamond miner said on Thursday it would consider bringing forward its dividend payment from financial year 2016.
Petra shares rose nearly 1 percent to 197.7 pence in early trading on the London Stock Exchange. The stock has gained about 66 percent in value so far this year. - Reuters