Petra Diamonds’ revenue for the six months that ended 31st December 2022 (H1 FY 2023) dropped 20% to $212.1 million, comprising revenue from rough diamond sales of $210.7 million (-20% y-o-y) and additional revenue from profit share agreements of $1.4 million.
The company reported a net loss of $17.6 million in H1 2023 compared with a net profit of $49.1 million in H1 2022. The strength of its product mix and an increase in like-for-like diamond prices of 12.6% helped to offset lower production and no contribution from Exceptional Stones, it noted.
Richard Duffy, Chief Executive Officer at Petra Diamonds commented: “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.”