Petra Diamonds, which has operations in South Africa and Tanzania, increased its diamond production by 3% to 653,700 carats in the third quarter of fiscal year 2023 compared to 636,529 carats, a year earlier.
It attributed the growth to a 14% jump in output at Finsch following the introduction of new equipment, despite some ground handling challenges.
Production at the Cullinan also rose 7%, supported by higher tailings and run-of-mine (ROM) grades.
It said production from both mines more than offset the temporary suspension of production at Williamson and the placing of Koffiefontein on care and maintenance.
"We are pleased to report higher diamond production following improved ROM grades and tailings production at Cullinan Mine and increased throughput at Finsch,” said Petra chief executive Richard Duffy.
“We expect to deliver on our revised guidance of 2.75-2.85 million carats for FY 2023. With Williamson targeted to resume production in Q1 FY 2024, we are well positioned to increase production by about 1 million carats to 3.6-3.9 million carats in FY 2025.”
Meanwhile, Petra said its revenue for the period under consideration dropped 37% to $67.8 million from $107.8 million in the second quarter of fiscal year 2023 as higher pricing at the Cullinan Mine and Finsch in the quarter was more than offset by tender cycle timings.
Its gross debt increased to $248.5 million from $241.7 million as of 31 December 2022, reflecting the accrued interest charges for the three months to 31 March 2023.
Consolidated net debt of $124.7 million from $90.8 million as of 31 December 2022 increased due to the timing of the company's diamond sales tenders, coupled with the previously announced capital expenditure programmes for the expansion projects at the Cullinan and Finsch.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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