Petra Diamonds swings to a loss after gems seized in Tanzania

The boss of Petra Diamonds on Monday admitted there is still no release date for a parcel of gems that was seized by the Tanzanian government last year, as he revealed a fall in sales and profits.

Johan Dippenaar said the mining firm is in contact with authorities about the shipment of 71,654 carats of gems, which was blocked from export as part of a wider industry crackdown.

He said: “We have not received a definitive release date, but we are confident it will be available for sale in the second half (ending June).”

In the six months to December 31 Petra Diamonds swung to a pre-tax loss of $95.2 million (£67.8 million) from a profit of $51.6 million after the amount of carats sold fell due to the seizure.

The company was also hit by strike action at some of its South African operations, as well as the strengthening of the South African rand.

Revenues decreased 1% to $225.5 million.

Dippenaar said Petra Diamonds has identified up to $70 million of cost savings it can make over the next three years. The firm expects the diamond-selling market to remain stable.