City, Date – Petra Diamonds has disclosed a resilient performance with a 2% upswing in diamond production, reaching 1.43 million carats for the six months concluding on December 31, 2023. This growth was propelled by the reinstatement of operations at its Williamson mine in Tanzania, previously halted due to a government dispute, and increased contributions from the Finsch mine in South Africa.
In addition to the surge in production, Petra underscored significant progress in development projects at its flagship Cullinan mine in South Africa. The company is investing in extending the mine’s lifespan and accessing higher-value ore. Anticipating completion of re-planning and value-engineering work associated with deferred capital projects by July 2024, Petra is poised to provide updates on the expected impact on future guidance.
Despite contending with challenges stemming from a subdued global diamond market amid the ongoing Covid-19 pandemic, resulting in a 10% decline in revenue to $187.8 million, Petra maintains a cautiously optimistic stance. Richard Duffy, CEO of Petra, acknowledged a 13.3% decrease in the average selling price, contributing to a net debt increase to $212.3 million. While recognizing positive indications of price recovery, Duffy emphasized a prudent market approach in the short term. This caution is exercised despite ongoing stabilization efforts at Finsch, Cullinan Mines, and the gradual return to full production at Williamson.
The company adheres to its FY 2024 production guidance of 2.9 – 3.2 million carats, leaning toward the lower end as communicated on November 1, 2023. Petra Diamonds remains committed to navigating the dynamic market landscape with strategic foresight and resilience.
