Petra Diamonds first half profits sparkle on revenue rise

Revenue increased 48% to $228.5m in line with carats sold which were up 47% to 1.9m. Volumes sold were slightly lower than carats produced of 2.01m against 1.62m due to the seasonal timing of Petra's tenders.

Diamond inventory at 31 December 2016 was 673,031 carats valued at $56.6m against 666,357 carats valued at $57.4m in 2015.

Capital expenditure was $134.9m (excluding capitalised borrowing costs and corporate capex).

“Having passed peak spend in the second half of 2016, we will see a further significant reduction in capex from this point onwards, falling to circa $130m in full year 2018 and circa $85m in full year 2019,” the company said.

“The group therefore expects to become free cashflow positive by the end of fourth quarter of 2017, and strongly cashflow generative from full year 2018 onwards.”