Petra Diamonds Limited said revenue for the year that ended 30th June, 2021 was up 38% to $406.9 million driven by its highest ever sales from exceptional stones (having a value of $5 million or more) that contributed $60.2 million during the year.
The company sold the 39.34-carat exceptional Type IIb blue diamond recovered from the Cullinan diamond mine in April 2021 for $40.2 million.
Petra’s FY 2021 production declined 10% to 3.24 million carats (FY 2020: 3.59 million carats) with increased year-on-year performance at Cullinan (1.94 million carats) offset by lower production at Finsch and Koffiefontein, while Williamson remained on care and maintenance.
Richard Duffy, Chief Executive of Petra Diamonds, said: “The Petra team has navigated a difficult FY2021 by delivering credible results whilst addressing numerous challenges around Covid-19 and the completion of our capital restructuring. This makes Cullinan’s record performance, driven by Project 2022, all the more noteworthy. We enter FY 2022 with a considerably strengthened balance sheet and a more supportive diamond market than we have seen for some time.”
The company expects to produce 3.3 to 3.6 million carats in FY 2022, with the South African operations estimated to contribute ca. 3.1 to 3.4 million carats and Williamson estimated to add between 0.22 and 0.27 million carats for the year.
Petra noted that the third wave of Covid infections in South Africa has had a limited impact on its operations there.
“Positive demand for rough diamonds continued in Q4 FY 2021 driven by strong consumer demand in the key retail markets, notably the US and China, coupled with low inventories and the return of capacity in the midstream in India. Demand was also supported by upstream supply discipline and shortages in some areas,” the company said.
“Demand for rough diamonds is expected to remain robust in the second half of CY2021, with retailers anticipating continued strong consumer demand,” it noted.