As London-listed Petra Diamonds delivered strong output and a solid financial performance during the first quarter of the year, its lenders have agreed to hike the company’s financing facilities to about $260-million, at reduced lending rates.

The diamond producer last week explained that the $40.4-million increase provided additional funding headroom, financial flexibility and further strengthening of the balance sheet, as it announced the highest quarterly production in its history.

Diamond output for the three months to September had reached 833 744 ct – a 2% rise on the 816 735 ct reported in the first quarter of last year. Revenue for the period under review was up 55% year-on-year to $100.8-million.

Last week, the lender group, which comprised FirstRand Bank, Absa Bank, the International Finance Corporation and Barclays Bank, agreed to increase the group’s debt and hedging facilities by an additional R400-million.

The transaction included an increase in the current revolving credit facility of R200-million to R500-million, with a 0.5% reduction in the Johannesburg Interbank Agreed Rate (Jibar) plus 5% margin.

The deal also saw an increase in the working capital facility of R150-million to R500-million, with an interest rate of prime rate less 1% (previously less 0.5%).

The group’s amortising term facility, which secured no changes to its size, had attracted an interest rate of the Jibar plus 3.5% margin (previously plus 4%).

Petra pointed to a presettlement lines increase of R50-million to R400-million.

The diamond producer also announced an agreement with Barclays Bank for a new London working capital facility of $5-million.

Petra’s rise in revenue during the period under review to $100.8-million was attributed to the higher production and the sale of a 122 ct blue diamond from the Cullinan mine for $23.5-million. Petra was entitled to an 85% share of the revenue from the sale of the diamond.

Meanwhile, the number of carats sold by Petra fell 10% to 532 250 ct, owing to an earlier cutoff for the first tender cycle of the 2015 financial year and the increase in inventory to 622 910 ct, which would be sold in the second- quarter tender cycle.

“These results demonstrate a strong performance for the group, with record first-quarter production and sales. It is particularly pleasing to see the meaningful contribution from the smaller mines, [namely] Koffiefontein, Kimberley Underground and Williamson, as each of these operations have been ramping up output successfully,” said CEO Johan Dippenaar.

Koffiefontein’s production increased 37% to 10 618 ct on the back of the continued ramp-up from the underground operations, while output from Kimberley Underground increased 31% to 36 036 ct, owing to the planned ramp-up of Wesselton’s treatment plant.

The Williamson operation delivered a 54% hike in production, from 34 976 ct in the first quarter of last year to 53 880 ct during the three months to September, after reaching throughput levels exceeding the planned 3.7-million tonnes a year.

Meanwhile, Petra’s Finsch mine maintained its production level at 517 998 ct and output from the Cullinan mine decreased 4% to 209 632 ct.