Petra Diamonds has reduced its net debt by about two thirds to $228.2 million as of 30 June 2021 from $693.2 million a year earlier due to the completed capital restructuring programme coupled with the sale of several exceptional blue and white diamonds from the Cullinan mine in South Africa.
Company chief executive Richard Duffy said they now have a more stable capital structure, considerably reduced debt obligations and greater liquidity.
“The strong recovery in the diamond market towards the end of the financial year, that has continued into the current quarter, further bolstered our improved financial position,” he said.
Duffy said record production at Cullinan, driven by Project 2022 throughput initiatives, among other factors, resulted in a 65% improvement in revenue to $402.3 million and contributed to operational free cash flow of $120.1 million for the financial year 2021.
Although the company recorded lower production for the year due to challenges at both Finsch and Koffiefontein, the volume of diamonds sold increased 51% to about 4 million carats from 2,6 million carats in the financial year 2020.
The increase was due to an improvement in market conditions, with rough diamond pricing realised by Petra increasing by about 9% for the year and the easing of certain COVID-19 related restrictions, which allowed for a higher volume of sales to take place, including the release of inventory held over from the prior year.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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