Petra Diamonds predicts that negative trends in the diamond market will improve for the remainder of 2024, as inventory levels become more balanced. The company made this announcement along with its full-year results.
Richard Duffy, CEO of Petra Diamonds, acknowledged the challenging market conditions for the fiscal year ending June 30. He stated, “We believe that prices will stabilize through to the end of 2024, with some improvement expected in 2025.” Duffy emphasized that continued discipline from producers will help rebalance inventory throughout the supply chain. He remains optimistic about the market fundamentals for the medium and long term.
In response to the market downturn, Petra postponed its August-September tender of South African diamonds. This decision aims to support producers in their efforts to limit supply.
Despite the slow market, Petra’s revenue increased by 13% year-on-year, reaching $367 million for the 12 months ending June 30. This growth was influenced by the deferral of certain sales parcels from June 2023 to August 2023 and the ramp-up of production at the Williamson mine in Tanzania.
Sales volume rose by 36% to 3.2 million carats for the financial year. However, the average price per carat dropped by 17% to $116. This decline included a 12% decrease in like-for-like prices, with the remainder attributed to changes in product mix.
The company also reported a net loss after tax of $107 million, slightly deeper than the $102 million loss reported the previous year.
Additionally, Petra Diamonds drew down approximately $47 million from its revolving credit facility due to the postponement of its August-September tender. The company expects to repay this amount after the conclusion of its October tender.
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