Petra Diamonds revenue spikes 49% to £194.65m

Petra Diamonds has announced its revenue surged 49% to $264.7m (£194.65m) in the six months ending 31 December 2021 (H1 FY22), compared to $178.1m (£130.9m) in the same period in 2020 (H1 FY21).

The manufacturer said the increase is particularly driven by the sale of exceptional stones totalling $77.9m (£57.28m), up 92% from $40.4m (£29.7m) in H1 FY2. 

It is reportedly further supported by the “strong” diamond market, with rough diamond prices on a like-for-like basis up 16% compared to the preceding six-month period to 30 June 2021.

However, Petra Diamonds’ sales volumes reduced by some 7% in H1 FY22 compared to H1 FY21 as an inventory build up in FY20 following the initial Covid outbreak led to “significantly” higher volumes being sold in 2021.

Production is also up year-on-year by 2% from 1,740,862 carat to 1,777,424 carats. Petra Diamonds said this is attributable to the Williamson mine resuming production during the period. Total injuries were also down 21% in the period.

Richard Duffy, chief executive of Petra Diamonds, said: “I am very pleased with both the significant improvement in our safety performance in H1 and our robust operating results, with production comfortably tracking our guidance.

“This strong operating performance, together with proceeds from the sale of exceptional stones supported by a strong market delivering ongoing price increases, has raised profitability, further strengthened our balance sheet and improved our cash position, which sets us up well for the second half of FY22 and beyond.”