(Alliance News) - Diamond miner Petra Diamonds Ltd said Monday first-quarter revenue sank sharply as sales and prices fell, despite production edging higher on the year prior.
For the three months ended September, diamond production rose 0.9% to 1.08 million carats from 1.07 million carats a year prior.
Diamonds sales, however, fell 3.7% to 603,626 carats from 626,541 the year prior, and prices were 4% lower on the three months prior. Revenue fell 23% to USD61.6 million from USD80.2 million a year before.
"We have reported another quarter of solid operational performance putting us on track to achieve our full year production target of circa 3.8 million carats," Petra Chief Executive Officer Richard Duffy said.
"The diamond market remains challenging, however we will benefit from the sale of the exceptional 20.08 carat Type II blue diamond from Cullinan recovered at the end of the quarter," Duffy added. "The implementation of Project 2022 is now under way, targeting USD150 million to USD200 million free cashflow over the next three years. We are expecting benefits to be realised from the second half of 2020 and will provide regular updates on our progress."
Shares in Petra were 2.2% lower at 7.90 pence in London on Monday.
By Ahren Lester; ahrenlester@alliancenews.com
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Petra Diamonds (PDL)