Petra Diamonds revenues drop 76% despite rise in production
Looking ahead, the group stated that pricing assumptions for the remainder of the year remain unchanged
Petra Diamonds has reported a 76% drop in revenues to $23m (£17.74m) in Q1 FY2025 from $113m (£87.16m) the prior quarter despite a 7% increase in diamond production to 679,625 carats from 636,743 carats in the prior period.
The group stated that business was impacted by the deferral of the majority of its South African goods from tender one.
However, diamond production increased largely due to higher grades at Cullinan Mine and higher tonnes mined and grade improvements at Williamson.
The group also recorded that sales for the first and second tender cycles of FY 2025 which closed this week, yielded $76m (£58.62m) from 600,161 carats sold.
Average prices increased 13% over the previous tender (Tender 7 FY 2024), with product mix contributing 22%, partially offset by a 9% decrease in like-for-like prices with weakness evident in the smaller size fractions.
Looking ahead, the group stated that pricing assumptions for the remainder of the year remain unchanged.
Richard Duffy, CEO of Petra, said: “Reflecting our agility to respond to weaker market conditions, we announced the decision to defer the sale of the majority of our South African goods from Tender 1 in August/September to support steps taken by major producers to manage supply. Our combined first and second tenders indicate continued weakness in the rough diamond market, more than offset by Petra’s product mix.
“…A further review of cash generation opportunities is currently underway to mitigate the impact of ongoing weakness in the diamond market and a stronger Rand, and we remain committed to our target of net cash generation for the full year in FY 2025. We continue to expect prices to show some improvement in CY 2025, with market fundamentals being supportive in the medium-to-longer term.”
