Q3 FY 2021 Figures Foster Positivism at Petra Diamonds

Market Analysis
20/04/2021 15:29

Petra Diamonds’ Q3 FY 2021 figures (January – March 2021) are fostering cautious optimism at the diamond mining group, after some difficult times. Q3 revenues increased by 16% to 106 million USD in comparison with Q3 FY 2020. This increase was amongst others driven by improved pricing and the sale of a 299.3 carat exceptional diamond in Antwerp in February for 12.2 million USD.

Q3 production reflected strong performance from the Cullinan mine, with a production of 436,703 carats, an increase of 9%. Cullinan continues to recover some exceptional diamonds, including a 299.3ct type IIa white stone and a 11.82ct type IIb blue stone during the period as well as an exceptional 39.34ct type IIb blue stone, post the period end. Finsch and Koffiefontein reported lower production with a decrease of 43% and 18% respectively. Production at Finsch was impacted by measures taken to curtail waste ingress. Production at Finsch and Koffiefontein was also affected by the high level of rainfall during Q3 FY 2021. Williamson remains on care and maintenance.

Richard Duffy, Chief Executive of Petra Diamonds, commented: “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, whilst 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.”