Rough-Price Recovery Bolsters Petra’s Sales

RAPAPORT… Petra Diamonds’ revenue rose in the third fiscal quarter as demand improved and rough prices returned to pre-pandemic levels.

Sales climbed 16% year on year to $106 million for the three months ending March 31, while sales volume slipped 1% to 1.1 million carats, the company reported Tuesday. Prices for the miner’s diamonds increased 12% on a like-for-like basis compared to the July-to-December period.

The miner sold a 299.3-carat, high-quality diamond in February for $12.2 million. It also carried more than 382,000 carats of lower-value rough over from the fiscal half that ended in December, selling it in January.

Production for the January-to-March period fell 24% to 704,498 carats, mainly due to inclement weather at the Finsch and Koffiefontein mines in South Africa and the continued shutdown of the Williamson mine in Tanzania. However, output at the company’s Cullinan site in South Africa rose 9% to 463,703 carats.

Petra completed its capital restructuring, reducing its debt to $290.7 million as of the end of March from $700.4 million on December 31.

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

Image: A rock breaker at the Cullinan mine. (Petra Diamonds)