Petra’s first-quarter output up 12% y/y

Stabilization of operations at the Cullinan and Finsch mines in South Africa and the resumption of production at the Williamson mine in Tanzania resulted in Petra Diamonds’ production increasing by 12% sequentially in the first quarter of fiscal 2024.

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London-listed Petra produced 696,639 carats in the three months to September 30, compared with 620,018 carats in the quarter to June 30.

Quarterly revenue totaled $97.6 million, compared with $49.9 million in the prior quarter.

Petra’s consolidated net debt increased to $192.4 million compared to $176.8 million in the prior quarter, reflecting the timing of the company’s tender completion, the continued low diamond price environment, the working capital requirements for Williamson to resume mining and increased capital expenditures Extend the life of the Cullinan and Finch mines.

“We believe that the supply-restriction measures taken by major producers and the two-month import suspension of Indian diamonds will help stabilize the market and support prices amid declining inventories. Although we believe that in the medium to long term due to structural supply shortages We continue to see markets being supported, but we are taking prudent steps to build the resilience of our business to address these market challenges and uncertainties, which we expect will continue into the coming months.

“By bringing forward the second solicitation for all of 2024, we were able to sell 75% of our shipments before the moratorium expired, with the remainder sold shortly after. We are in discussions with our first lien lenders to increase We have an existing revolving credit facility and are exploring options to provide further financial flexibility, such as: B. Optimizing our operating expenses and deferring capital expenditures.

“We believe these measures will enable us to weather this period of market weakness while limiting the impact on our value-led growth strategy,” said Petra CEO Richard Duffy.

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