Petra Diamonds said its Q1 FY 2022 production increased 8% to 861,991 carats on the preceding quarter but dropped 12% on a year-on-year basis. Production was lower than Q1 FY 2021, due to planned decreases in tonnages and grade as part of the strategy to mitigate the waste ingress at the Finsch mine, but was a significant improvement over the previous quarter, the miner noted, adding that it was on track to deliver full year guidance.
For the three months that ended 30th September 2021, Petra’s revenue was up 48% to $114.9 million driven by proceeds from the sale of exceptional stones that totalled $50.2 million. This included the sale of the exceptional 39.34-carat blue diamond for $40.18 million and a 342.92-carat Type IIa white diamond which sold for $10 million. The company said diamond prices on a like-for-like basis were up 3% compared to those achieved in Q4 FY 2021.
Richard Duffy, Chief Executive of Petra Diamonds, said: “The company has delivered a very strong revenue result due to the contribution of Exceptional Stone sales, supported by the continued strength in the diamond market.”
The company said its production guidance for FY 2022 remains unchanged at 3.1 to 3.4 million carats, although the Cullinan mine’s production is now expected to be towards the bottom half of its earlier guidance of 1.7 to 1.9 million carats if no mitigating steps are taken. The diamond market remained firm, with prices for rough diamonds supported by buoyant demand in the midstream and in the key jewellery retail markets, notably the US and China, during the quarter. There is a positive outlook for the market for the remainder of calendar year 2021 and into calendar year 2022 due to the continued pressure on supply, given the significant recent contraction in global output, as well as promising forecasts for retail demand during the festive buying period.