In a diamond market that is softer than anticipated, London-listed Petra Diamonds is moving ahead with confidence despite a downturn in its financial performance for the year ended June 30, 2023.
The group’s results, which excluded its Koffiefontein asset, which has been classified as a discontinued operation and is in the process of a responsible and orderly closure, also recorded an adjusted net loss of $2.3-million, down from $115.2-million profit in 2022, and an adjusted loss a share of 2.96c, down from a profit of 48.01c in 2022.
“That was on the back of reduced sales and sales deferrals, but also as a result of us increasing our capital expenditure for our [extension] projects at the Cullinan mine and Finsch, in South Africa,” he explained. Production for 2023 declined, with total diamonds down to 2.67-million carats from 3.32-million, marginally below revised guidance on the back of some operating challenges.
Capex for the year increased 127% to $117.1-million, of which $72.4-million, an increase from $34.3-million in the prior year, was spent on the life extension projects that will contribute to the increased carat production