Petra Diamonds increased its output in the first quarter of the fiscal year 2024 by 12% to 696,639 carats, mainly due to Williamson Mine in Tanzania resuming operations ahead of schedule.
It said production at Cullinan Mine in South Africa was largely in line with expectations, with a small increase in tonnes treated offset by grade trending towards the lower end of expectations.
Petra reported that at Finsch, also in South Africa, tonnes treated decreased by 23% from the previous quarter, but a 26% increase in the run of mine more than offset this trend and reflected increased quarter-to-quarter volatility associated with the sub-level cave maturity.
However, its revenue for the period was $97.6 million, down 4% compared to $101.4 million in the first quarter of fiscal year 2023.
The first quarter revenue included tender one sales of $79.3 million and a portion of tender two sales concluded before September 30, with the balance of tender two adding a further $22.2 million post-period end.
Meanwhile, Petra Diamonds chief executive Richard Duffy said Petra is in discussions with its first lien lender to upsize its existing revolving credit facility.
The company is also evaluating options to provide further financial flexibility, such as optimising its operational expenditure and deferring capital spend.
“We are confident these actions will enable us to navigate this period of market weakness while limiting the impact on our value-led growth strategy," he said.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
