Petra Diamonds has reported a 76% drop in revenues to $23m (£17.74m) in Q1 FY2025 from $113m (£87.16m) the prior quarter regardless of a 7% improve in diamond manufacturing to 679,625 carats from 636,743 carats within the prior interval.
The group said that enterprise was impacted by the deferral of the vast majority of its South African items from tender one.
Nonetheless, diamond manufacturing elevated largely because of increased grades at Cullinan Mine and better tonnes mined and grade enhancements at Williamson.
The group additionally recorded that gross sales for the primary and second tender cycles of FY 2025 which closed this week, yielded $76m (£58.62m) from 600,161 carats offered.
Common costs elevated 13% over the earlier tender (Tender 7 FY 2024), with product combine contributing 22%, partially offset by a 9% lower in like-for-like costs with weak point evident within the smaller dimension fractions.
Wanting forward, the group said that pricing assumptions for the rest of the yr stay unchanged.
Richard Duffy, CEO of Petra, mentioned: “Reflecting our agility to reply to weaker market situations, we introduced the choice to defer the sale of the vast majority of our South African items from Tender 1 in August/September to help steps taken by main producers to handle provide. Our mixed first and second tenders point out continued weak point within the tough diamond market, greater than offset by Petra’s product combine.
“…An extra assessment of money technology alternatives is presently underway to mitigate the impression of ongoing weak point within the diamond market and a stronger Rand, and we stay dedicated to our goal of internet money technology for the total yr in FY 2025. We proceed to count on costs to point out some enchancment in CY 2025, with market fundamentals being supportive within the medium-to-longer time period.”