In Summary

The short-term report shows that revenues went down to $225.2 million in the half financial year 2017/18 from $228.5 million as recorded during the same period last year.

Dar es Salaam. Petra Diamonds Limited has announced its interim trade updates for the six months ending December 31, 2017, recording a 1 per cent drop in revenues.

The short-term report shows that revenues went down to $225.2 million in the half financial year 2017/18 from $228.5 million as recorded during the same period last year.

The decline was mainly due to Williamson’s diamond mine in northwest Tanzania first parcel (71,654.45 carats) not being sold during the period, according to the company.

In September 2017, the findings of an investigation into the Tanzanian diamond sector by a parliamentary committee implied a potential under-valuation of diamond parcel prior to export, impacting on the royalty payment to the government.

“The parcel still remains blocked for export by the government,” the company stated in its report.

However, the company earned $477 million during the annual financial year ended June, 2017.

At the same time an adjusted mining and processing costs increased to $140 million during the period compared to $137.7 million in the preceding year.

Also, other direct income declined to $0.4 million in the half financial year, compared to $1.4 million, the year before.

The report also showed a decrease in profits from mining, reaching $85.6 million from $92.2 million during the same period in the 2016/17 financial year.

The company’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) went down to $80.1 million in the half year 2017/18 from $87.1 as recorded one year ago.

Adjusted net profit after tax again declined to $5.3 million during the six years ending 31 December 2017 from $24.1 which was recorded in the same period in 2016.

Furthermore, the company scored a net loss after tax of $117.7 million during the period of six months, compared to the net profit after tax of $35.2 million during the same period in 2016. “Half year, 2017/18 was a challenging year which saw the expansion programmes ramp up slower than expected; however, the Company remained in growth mode and delivered record production and revenue,” the statement was made in the report.