LSE-listed Petra Diamonds has reported a 33% year-on-year increase in revenue to $140.6-million for the quarter ended March 31 – the third quarter of its 2022 financial year.

In an unaudited trading update released on April 20, Petra said the higher revenue was driven by strong prices achieved in the fourth tender in March, with like-for-like prices up 37.6% when compared with the third tender in December.

Revenue for the financial year-to-date (YTD) increased by 43% year-on-year to $405.4-million, driven by exceptional diamond sales contributing $83.3-million, coupled with the upward trend in diamond prices.

Notable for the third quarter was the sale of one exceptional diamond in the March quarter – a 157.88 ct Type IIa white diamond recovered at the Cullinan mine – for $5.5-million. 

“Petra has benefitted from strong diamond prices during the quarter, underpinned by a strong operational, cost and safety performance. Although we anticipate some pullback in diamond prices from the elevated March tender levels as a result of the economic impact of the war in Ukraine, the structural shift in the diamond market continues to provide positive momentum.

“This, coupled with our operational improvements driving margin and cash generation, supports a positive outlook for the business with the potential for further reductions in our debt levels,” said Petra CE Richard Duffy.

Notwithstanding the revenue increase, carats sold were down 31% year-on-year for the March quarter and 16% for the YTD, given that there was only one sales tender in the quarter.

Expected sales volumes for the full year are anticipated to remain within guidance, with further tenders to be held in April and June.

Production for the March quarter increased by 18% to 830 456 ct, compared with the 704 498 ct produced for the same period last year, while YTD production increased by 7% to more than 2.6-million carats, compared with more than 2.4-million carats for the same period last year.

Petra attributed the increase in production to a resumption of production following a period of care and maintenance at the company’s Williamson mine, in Tanzania.

Additionally, the remedial steps taken at the Finsch mine, in the Northern Cape, following waste ingress during the second quarter of last year positively affected the quarterly comparison.