Petra Posts Interim results for the 6-Months Ending 31 Dec 2022

Rough MarketIn-depth

(PETRA PRESS RELEASE): Petra Diamonds Limited announces its unaudited interim results for the six months ended 31 December 2022.

Richard Duffy, Chief Executive Officer at Petra Diamonds commented:

“Petra’s new culture and ongoing focus on continuous improvement through our operating model has enabled the Company to respond swiftly and efficiently to the operational challenges experienced in H1 FY 2023.
We are optimistic that the fundamentals of the diamond market will continue to support prices, with demand for luxury goods remaining robust in the USA, notwithstanding recent economic volatility. We also expect that the ending of lock-down restrictions in China will benefit diamond pricing in the near to medium term.

We remain on track to meet recent production guidance, while our cost guidance remains largely unchanged despite inflationary pressures as a result of our ongoing focus on costs, supported by a weaker Rand. Both the Finsch & Cullinan Mines have a significant resource base giving them potential for long lives, and our projects at both mines continue to progress in line with expectations. As a result, our guidance shows annual production increasing by c.1 million carats from 2.8 million carats in FY 2023 to 3.6 - 3.9 million carats in FY 2025. Production will be further boosted from the recently approved C-Cut extension at the Cullinan Mine, set to deliver a total of 2.3 million additional carats from FY 2025 through to FY 2033.

At Williamson, we have made considerable progress in addressing the social and environmental impact of the tailings storage facility wall breach. The necessary permits are being put in place, with production anticipated to resume during Q1 FY 2024. Ahead of this resumption, maintenance is being accelerated and waste stripping is being carried out to construct the interim tailings storage facility and to enable an efficient ramp-up in production.

Koffiefontein has been loss making for a number of years and incurred an operating loss of US$8.7 million in H1. We are taking important steps towards responsible closure in discussion with all relevant stakeholders.
Revenue for the half year decreased from US$264.7 million in H1 FY 2022 to US$212.1 million, with the strength of our product mix and an increase in like-for-like diamond prices of 12.6% helping to offset lower production and no contribution from Exceptional Stones (H1 FY 2022: US$77.9 million).

Post period-end, two blue diamonds recovered from the Cullinan Mine, including an Exceptional Stone, were sold into partnership. The 17.4 and 10.4 carat gem quality blue diamonds were sold for US$7 million and US$2 million respectively. We will share equally in any upside on the sale of the stones once cut and polished, extending our partnership approach on selected diamonds.”


Source: Petra Press Release

Photo Courtesy of: Petra