JOHANNESBURG – Petra Diamonds’ flagship Cullinan mine, 40km east of Pretoria, has lost its sparkle, yielding low rough diamond prices in the six months to December.
The company said rough diamonds recorded at Cullinan had plummeted to $96 (R1 314) a carat in the period under review from $140 a carat reported in the previous year.
Petra, which runs four mines in South Africa and one in Tanzania, said the Cullinan mine fell 13 percent on the London Stock Exchange.
Despite the lower rough diamond prices, Cullinan led the way in terms of production with diamond production increasing 30 percent to 785 444 carats compared with 602 594 carats in the preceding period.
Petra said net debt had climbed to $557.2 million from $520m in the previous period last year. The company said it had suffered a $25m revenue shortfall due to the volatility in Cullinan’s product mix. It also grappled with a $10m shortfall in revenue due to ongoing volatility in Cullinan’s product mix.