Revenue drops sharply at Petra Diamonds after Tanzanian confiscation
Bengaluru — Petra Diamonds’ first-quarter revenue fell 17% after the government of Tanzania last month seized a consignment of diamonds from its Williamson mine.
The owner of the Cullinan mine in SA has been hit by a crackdown on mining firms in Tanzania, where the government is attempting to secure more revenue from the sector.
The Tanzanian government confiscated a consignment of diamonds from the Williamson mine, which is majority-owned by Petra, alleging the company had under-declared the value of the stones by about half.
Petra has denied the charge.
The London-listed company said on Monday its revenue was $78.7m in the quarter ended September 30, while net debt rose to $614m, from $555m as of June 30.
Shares in Petra rose as much as 4%, before paring gains to trade up 2.75% at 84p by 8.01am GMT.
Petra maintained its full-year production guidance of between 4.8-million carats and 5-million carats.
Petra has also faced strikes in SA over pay, rent, housing allowances and medical expenses.