Petra’s revenue increases as diamond market improves

20th April 2021 By: Tasneem Bulbulia - Senior Contributing Editor Online

Diamond miner Petra Diamonds’ revenue for the quarter ended March 31 – the third quarter of its 2021 financial year – increased by 16% year-on-year to $106-million, as prices recovered to pre-Covid-19 levels.

For the nine months ended March 31, revenue was $284.2-million, in line with that of the nine months to March 31, 2020.

Production for the quarter under review was lower year-on-year, at 704 498 ct, while output for the nine months, of 2.44-million carats, was also lower year-on-year.

Petra has interests in four operations: three underground mines in South Africa (Finsch, Cullinan and Koffiefontein) and one openpit mine in Tanzania (Williamson).

The miner has completed a capital restructuring to strengthen the balance sheet, with consolidated net debt reduced to $290.7-million as at March 31.

The company had unrestricted cash of $139.8-million at period end, with undrawn banking facilities available of $10.8-million.

Petra had diamond inventory valued at $75.5-million as at March 31.

“We are seeing encouraging signs of a recovery in the diamond market, supporting better pricing, reflected in the third-quarter revenue numbers. Post completion of the capital restructuring, Petra is in a far stronger position, with a solid platform for future growth and development.

“Production during the period reflected continued out-performance from Cullinan, with remedial action to address waste ingress at Finsch delayed as a result of excessive rainfall levels, which also negatively impacted Koffiefontein, while the Williamson mine remains on care and maintenance.

“We expect to see improved performance from Finsch as underground water ingress reduces and the remediation steps are implemented,” says CE Richard Duffy.