Petra Diamonds Ltd - diamond miner in South Africa and Tanzania - Pretax profit falls by a third to $62.7 million in the financial half year that ended December 31 from $90.7 million a year before. Revenue of $264.7 million, up 49% from $178.1 million, was in line with a trading update provided by Petra back in January. Operating costs rose in line with revenue, but Petra booked lower financial income and higher financial expense and also suffered negative currency movement. The company declared no interim dividend, the same as a year before.

‘We have benefited from the recovery in rough diamond prices, record proceeds from the sale of ’exceptional stones’, and the improvements we have made in our operations, resulting in significantly improved safety levels, profitability and cash flow,’ comments Chief Executive Richard Duffy. ‘Our strengthened operating platform and balance sheet coupled with the robust rough diamond market, sets us well for the second half of the year and we are well on track to meet [financial] 2022 operational guidance.’

Petra produced 1.8 million carats of diamonds in the recent six months, up 2.1% from 1.7 million a year before. Financial 2022 diamond production is expected to meet guidance of 3.3 million to 3.6 million carats, which would be up from 3.2 million in financial 2021. Petra expects to maintain this level of annual production also in financial 2023 and 2024 before output rises to 3.6 million to 3.9 million carats in financial 2025.

Current stock price: 101.00 pence

12-month change: up 18%

Copyright 2022 Alliance News Limited. All Rights Reserved.