Petra Diamonds has announced a major drop in revenue for the first quarter of 2025, largely due to a delay in selling nearly all of its South African products amid ongoing weak demand.
The UK-based mining company revealed that its total revenue for the quarter ending September 30 was $23 million. This figure includes $8.5 million from the sale of an 18.85-carat blue diamond from the Cullinan Mine in South Africa, and $14 million from its Williamson mine in Tanzania. This represents a staggering 77% decrease compared to the same period last year and an 80% drop from the previous quarter.
In a more positive note, Petra’s recent tenders—held after the end of Q1—generated $76 million. The average price per carat rose by 13% to $113 compared to the last tender in June. However, prices for similar products fell by 9%. The increase in average prices was attributed to a better mix of products. The company also withdrew 88,000 carats of lower-quality brown diamonds, valued at about $3 million, due to poor demand.
CEO Richard Duffy commented on the results, stating that the combined results from the first and second tenders highlight ongoing weaknesses in the rough diamond market. However, he noted that Petra’s product mix helped offset some of this decline.
Duffy emphasized that the company is exploring ways to enhance cash generation in light of the persistent market challenges and a stronger South African rand. He reaffirmed Petra’s commitment to achieving net cash generation for the entire fiscal year 2025.
Looking ahead, he expressed optimism, stating, “We expect prices to improve in calendar year 2025, with market fundamentals being supportive in the medium to long term.”
Related topics:
- Bollywood Actress Neha Dhupia Inaugurates New Jewelry Store
- Syster P to Open New Store at Arlanda Airport
- Artistry Launches 2025 Jewelry Catalog
