Petra Diamonds on the verge of making negative revenue
An absolutely flat 1st quarter of financial year 2016 has already been announced by Petra Diamonds which includes a “zero” revenue and just 1% growth in the production of solitaires. The diamond firm has said that it is still on the right track for the next year’s production of 3.3 to 3.4 Mcts for 2016 and approx 5 Mcts for 2019.
Petra Diamonds has got production done but there is absolutely no revenue in the 1st quarter of the financial year of 2016. The solitaire giant said that there are a lot of factors responsible for it.
The results of Petra Diamonds for company’s revenue report for the 1st quarter of FY-16 shows no revenue at all and just a slight increase in the production.
The company said that there are a number of factors responsible for this situation including the most dramatic weakening of South Africa’s currency which has offset the impact of the flow of cash of the prices of the US $, a slowdown of the Chinese economy, excess inventory readied and less production from Cullinan and Williamson.
The diamond king conducted its very 1st analysis of the FY this month in which about 696801 Carat contributed to sales yielding about $68.9 million. But, on the other hand, the prices went down by around 8%. Apart from the 96% in terms of volume and 90% in terms of value of the solitaires were offered in the market. The parcels still not sold would either be up for sale at some negotiated cost or would be pushed to the 2nd tender which is most likely to happen in the 1st week of Dec. The 4 following tenders have been scheduled for 2nd half of the financial year of 2016.
The firm said it is still on track for the production guide of 3.3 to 3.4 Mcts for the financial year 2016.