15th Sep 2023 12:35
(Alliance News) - Petra Diamonds Ltd on Friday said that it swung to a loss in its recent financial year, amid operating challengers.
Petra Diamonds shares were down 4.4% to 66.00 pence each in London on Friday afternoon. Over the last 12 months, the stock is down 42%.
The Southern Africa-focused diamond miner and supplier reported its annual results for the 12 months to June 30 on Friday.
The firm swung to a pretax loss of USD38.8 million in the financial from USD139.5 million a year earlier.
Revenue fell by 42% annually to USD325.3 million from USD563.7 million
It said that production stood at 2.67 million carats and fell short of revised guidance, which Petra blamed on operating challenges. However, it noted that production showed an "improving trend" during the second half as operating performance stabilised.
Looking ahead, Petra anticipates that rough diamond demand will remain subdued in the short-term, but believes the "prevailing structural supply deficit" of diamonds will provide market support in the medium to longer-term.
"Actions taken to strengthen our business and improve cash flow generation, together with our capital discipline around investing in the growth and life extension of our operations, means that Petra is resilient in the short-term and well placed in the medium to longer term to leverage these continued supportive diamond market fundamentals," said Chief Executive Officer Richard Duffy.
By Sophie Rose, Alliance News reporter
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