Image credit: Petra Diamonds
It said although diamond prices rose by about 21% on a like-for-like basis at the September 2020 tender in comparison to the prices obtained following the COVID-19 outbreak, with a further 2% increase at the October 2020 tender post Period end, prices are still down around 10% in comparison to pre-COVID-19 levels.
Petra's diamond inventory as at 30 September 2020 was about 1,4 million carats valued at $90.2 million as a result of the extended lead times since the introduction of Antwerp-based tenders to mitigate the COVID-19 impact on customers' ability to attend tenders in South Africa.
"The company will continue to remain flexible in terms of its approach to diamond sales in order to achieve the best possible route to market, subject to prevailing market conditions and any COVID-19 related regulations or restrictions," it said.
The company's consolidated net debt was $687.8 million as at 30 September 2020, marginally improving from $693.2 million as at 30 June 2020.
Meanwhile, Petra said its first-quarter production eased 10% to 974,346 carats compared with 1,08 million carats, mainly due to the Williamson mine remaining on care and maintenance.
The Williamson mine, in Tanzania, was placed on care and maintenance last April, as a result of a significantly depressed market environment.
The company said it would resume operations once diamond prices are at a level that makes it operationally sustainable.
Petra recently said that it had reached an agreement with its ad hoc group of bondholders and South African lender group around a financial restructuring that will provide the company with a considerably more manageable level of debt going forward.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
