Petra FY22 revenues hit £486.7m

Petra has announced that its revenues hit $585.2m (£486.7m) in the financial year ending 30 June 2022 (FY22), up year-on-year from $406.9m (£338.43m). 

This comprises a 44% rise in revenues to $584.1m (£485.81m) from diamond sales, and additional revenues from profit share agreements of $1.1m (£914,903).

Petra said the increase in diamond sales was driven by like-for-like prices increasing 41.5% year-on-year due to “record” jewellery retail demand out of the US following the easing of Covid-19 restrictions, and the sale of a high number of Exceptional Stones which contributed a “record” $89.1m (£74.1m) compared to $62m (£51.56m) in FY21.

Meanwhile, production for the fourth quarter (Q4) was down 6% to 745,790 carats, largely due to lower tonnes treated at Cullinan Mine, while production for the year increased 3% to 3,353,670 carats, largely owing to the resumption of mining at Williamson.

Petra Diamonds said it is closely monitoring current macroeconomic uncertainties, particularly the impact of inflation on its cost base, the war in Ukraine and sanctions on Russian producers, as well as the ongoing implications of Covid-19.

It is also monitoring cost increases in its operations “very closely”, but its relatively low fuel consumption, disciplined cost management, three-year labour agreements to June 2024 and exposure to a weaker South African Rand will reportedly assist the company in “better absorbing” these cost pressures.

Richard Duffy, Petra CEO, said: “This year’s performance completes the successful turnaround of Petra and includes the implementation of our new operating model, incorporating continuous improvement, following the conclusion of Project 2022 which has delivered improved efficiency, capital discipline and strong cash generation. 

“We reaffirm our production and cost guidance through to FY25. An increase in the lead-time for some capital items will shift some FY22 capex to FY23 with no expected impact on the anticipated project timing or overall capex spend.”

source https://www.jewelleryfocus.co.uk/205989-petra-fy22-revenues-hit-486-7m