Petra Diamonds has reduced its production forecast for the financial year (FY) 2013 by a quarter of a million carats due to lower production at its Williamson mine in Tanzania and a revision of the mining scope at Finsch mine in South Africa.
It said in a statement that it now expects to produce about 2.9 million carats for the year ending June 30 2013, compared to about 2.2 million carats produced in FY 2012.
Despite this move, Petra said it intends to increase its group output, adding that the production target of 5 million carats a year by FY 2019 was still achievable.
Meanwhile, Petra said that diamond prices were set to remain flat for the rest of the year with increases expected next year due to the effects of production decreases by major producers and the restocking of inventories in the pipeline, combined with a gradual improvement in global financial conditions.
“Whilst current rough prices remain under pressure, management continues to believe that the outlook is positive in the medium term,” it said.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
