Petra Diamonds more than doubles adjusted EBITDA

Petra Diamonds’ adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 103% to $264.9 million for the year ended 30 June 2022 from the previous year’s 130.2 million, reflecting positive operational leverage from its revenue growth and improved efficiencies from Project 2022.
Its revenue rose 44% to $585 million during the period under review compared to 406.9 million, a year earlier.
The increase in revenue from rough diamond sales was driven by a 41.5% growth in year-on-year like-for-like prices and the contribution from the sale of a record number of exceptional stones of $89.1 million.
Project 2022, which was announced in 2019, seeks to improve throughput at the company’s operations, cost efficiencies and strategic sourcing.
“We have created a business improvement function to ensure that the systems and processes developed as part of Project 2022, which concluded this year, will continue to deliver benefits and seek out further improvement opportunities,” it said.
Meanwhile, Petra said its production increased 3% to 3,353,670 carats, largely owing to the resumption of mining at the Williamson mine in Tanzania.
The mine recommenced operations in August 2021 following 17 months of care and maintenance. 
“Williamson ore is lower grade in comparison to our South African mines and this translated into a 3% increase in diamonds recovered, within our guidance range,” said Petra.

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