September 28, 2022

Taylor Daily Press

Complete News World

A mine worker is seen under ground at Cullinan mine, near Pretoria

Petra Diamonds annual revenue increases by 44% of US gemstone demand

The company, which operates three mines in South Africa and one mine in Tanzania, sold 11% fewer diamonds in the year ended June 30, but was boosted by a 41.5% increase in diamond prices and strong demand from exceptional stone sales at U.S. jewelry retail. – which the company defines as rough diamonds worth at least $5 million – rose 44% year-over-year to $89.1 million.

Petra said that while the diamond market remains strong, macroeconomic uncertainties caused by rising inflation will reduce demand and increase operating costs.

“We are closely monitoring cost escalation in our business, but our relatively low fuel consumption, disciplined cost management, three-year contracts until June 2024 and exposure to a weaker South African rand will help us better manage this cost pressure,” Petra’s chairman said. Administrator, Richard Duffy, in a statement.

After announcing plans to sell its Kofifontein mine in South Africa in April, Petra said it was evaluating potential buyers for it. The mine, which sold less than 4% of revenue and 1% of diamonds in the last financial year, is approaching its end of life in 2025, according to the current mine plan.

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