Stabilising operations at its Cullinan and Finsch mines, in South Africa, and the resumption of production at the Williamson mine, in Tanzania, led to a 12% quarter-on-quarter increase in Petra Diamonds' production for the first quarter of the 2024 financial year.

London-listed Petra produced 696 639 ct of diamonds in the three months ended September 30, compared with the 620 018 ct produced in the quarter ended June 30.

Revenue for the quarter totalled $97.6-million, compared with revenue of $49.9-million reported for the prior quarter.

Petra's consolidated net debt increased to $192.4-million, compared with $176.8-million in the prior quarter, owing to the timing of closing the company’s sales tenders, the continued lower diamond pricing environment, working capital funding for the resumption of mining at Williamson and the increasing capital expenditure to extend the life of the Cullinan and Finsch mines.

"We believe the actions taken by the major producers to curb supply and the two-month Indian diamond import moratorium will assist in stabilising the market and supporting prices as inventory levels reduce. While we continue to see support for the market in the medium to longer term as a result of the structural supply deficit, we are taking prudent steps to enhance our business resilience in light of these market challenges and uncertainties that are expected to continue over the coming months.

"By bringing forward our second tender of full-year 2024 we were able to sell 75% of our goods ahead of the moratorium, with the balance sold shortly after. We are in discussions with our first lien lender to upsize our existing revolving credit facility and are evaluating options to provide further financial flexibility, such as optimising our operational expenditure and deferring capital spend.

"We are confident these actions will enable us to navigate this period of market weakness whilst limiting the impact on our value-led growth strategy,” comments Petra CEO Richard Duffy.