Petra Diamonds Q3 revenues hit £107.66m

Petra Diamonds Limited has announced its revenues grew by 33% year-on-year in the three months ending 31 March 2022 (Q3), from $106m (£811.71m) to $140.6m (£107.66m).

Additionally, revenues increased 43% year-on-year in the nine months to 31 March 2022 (YTD) from $284.2m (£217.63m) to $405.4m (£310.44m).

Petra said the growth was driven by “strong” prices achieved in the fourth tender in March 2022, with like-for-like prices up 37.6% compared to the preceding tender in December 2021.

Additionally, the sale of one Exceptional Stone in Q3 – a 157.88ct Type IIa white stone from Cullinan – contribited $5.5m (£​​4.21m), with Exceptional Stones sales contributing $83.3m (£63.78m) YTD.

However, notwithstanding the revenue increase, the number of carats sold were down by 31% in Q3 and 16% YTD, given that there was only one sales tender in Q3.

Petra said it expects “some pull back” in diamond prices from the elevated March tender levels due to the economic impact of the war in Ukraine, although no impact is expected for sales volumes for the full year.

Meanwhile, Q3 production is up 18% to 830,456 carats, compared to 704,498 carats in the same period last year, and up 7% YTD to 2,607,880. The manufacturer said this is largely attributable to Williamson’s resumption of production following a period of care and maintenance.

Richard Duffy, chief executive of Petra Diamonds, said: “Petra has benefitted from strong diamond prices during the quarter, underpinned by strong operational, cost and safety performance.

“Petra’s production of Exceptional Stones in the year to date in part reflects our investment in throughput as part of Project 2022. This Project is now integrated throughout our business and is expected to deliver net free cash of over $200m (£​​153.15m).”

source https://www.jewelleryfocus.co.uk/204813-petra-diamonds-q3-revenues-hit-107-66m