Petra Diamonds, a London-listed gemstone miner, announced that its production and revenue for the first quarter have increased compared to the previous quarter, despite challenges in the market. The company is taking measures to improve business resilience in light of market weakness.
Production and Revenue Growth
For the three months ending September 30, Petra Diamonds saw a 12% rise in production, totaling 696,639 carats. Additionally, revenue increased by 96% to $97.6 million. However, on an annualized basis, first-quarter revenue declined by 4%.
Petra Diamonds believes that actions taken by major producers to limit supply, along with a temporary suspension of diamond imports in India, will contribute to market stability and support prices. As the company reduces its inventory levels, it expects to see positive market support in the medium- to longer-term due to a structural supply deficit.
Enhancing Business Resilience
Despite optimistic long-term prospects, Petra Diamonds acknowledges uncertainties and challenges that are likely to persist in the market over the coming months. Therefore, the company is implementing strategic measures to enhance its business resilience. These include discussions with a lender to increase its existing line-of-credit and exploring options for additional financial flexibility, such as optimizing operational expenditure and deferring capital spending.
Petra Diamonds remains focused on navigating market challenges and ensuring the sustainability of its operations. At 0723 GMT, the company’s shares remained unchanged at 46.55 pence.