Petra boosts Q3 revenue, output

Petra Diamonds’ third-quarter revenue rose by 33% to $140.6 million compared to $106.0 million, a year earlier driven by strong prices achieved in the fourth tender in March 2022 with like-for-like prices up 37.6% compared to the preceding December 2021 tender.
Company chief executive Richard Duffy said year to date (YTD) revenue grew 43% to $405.4 million buoyed by exceptional stones sales contributing $83.3 million YTD, coupled with the upward trend in diamond prices.
“This culminated in the significant like-for-like 37.6% price increase we saw in the 4th Tender in March compared to the preceding December 2021 tender,” he said.
Duffy also said that Petra’s balance sheet strengthened further during the quarter with net debt of $107.0 million and unrestricted cash balances totalling $233.2 million at the period end after settling the group’s first-lien facilities of $88.9 million, including interest, during the quarter.
In his view, although the company anticipates some pullback in diamond prices from the elevated March tender levels as a result of the economic impact of the Ukrainian conflict, the structural shift in the diamond market continues to provide positive momentum.
“This, coupled with our operational improvements driving margin and cash generation, supports a positive outlook for the business with the potential for further reductions in our debt levels.”
Meanwhile, Petra said its quarterly production rose 18% to 830,456 carats compared to 704,498 carats, the previous year with YTD production up 7% to 2,6 million carats from 2,4 million carats, largely attributable to Williamson’s resumption of production following a period of care and maintenance.

Mathew Nyaungwa, Editor in Chief of the African Bureau, in Zimbabwe, Rough&Polished