Petra Diamonds, which has operations in South Africa and Tanzania says its revenue declined by 42% to $325.3 million in the fiscal year (FY) ended 30 June 2023 compared to the previous year’s $563.7 million.
Company chief executive Richard Duffy said the year-on-year reduction in revenues mainly relates to no contribution from exceptional stones, a 33% reduction in rough diamonds sold due to a 20% reduction in diamonds recovered and the deferral of the majority of tender six sales and about 76 000 carats of predominantly higher value stones from tender five from FY 2023 to FY 2024.
He said like-for-like prices increased by around 2% year-on-year and revenue from profit share agreements increased to $1.4 million compared to FY 2022’s $1.1 million.
Duffy said diamond inventory increased to 715 200 carats valued at $65.9 million at the end of the year, compared to 381, 700 carats worth $40.2 million at 30 June 2022 due to the deferred sales.
“While our first four tenders in the year reflected strong consumer demand and early optimism that Chinese demand would recover after the lifting of COVID-19 restrictions, the rough diamond market softened towards the end of the year, which has continued into FY 2024,” he said.
“The progress we have made to strengthen the balance sheet over the last few years, coupled with our flexible sales process, leaves us well placed to respond to short-term weakness in the diamond market.”
Duffy said FY 2024 sales have so far reflected persistently softer market conditions due to prevailing macroeconomic uncertainties and the temporary Indian diamond import moratorium announced in late September 2023, which is intended to bring some much-needed stability and strength to the market and prices.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
