News

Petra Diamonds Reports Pretax Loss in Fiscal 2023

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4.5

Andrew R. Michaud

• September 15, 2023

Petra Diamonds, a leading gemstone miner, announced that it has recorded a pretax loss for fiscal 2023 due to lower production and weaker realized prices. Despite this setback, the company remains confident in its fiscal 2024 guidance.

Financial Performance

In the year ended June 30, Petra Diamonds reported a swing to a pretax loss of $38.8 million, compared to a restated pretax profit of $139.5 million in fiscal 2022. The adjusted pretax profit also saw a significant decline to $8.2 million, down from $155.1 million in the previous year.

These results were largely driven by a fall in revenue from $563.7 million to $325.3 million. The decline in total diamond production and a 14% decrease in the average realized price per carat to $139 were key contributing factors.

Positive Trend in H2

Despite the challenging financials, Petra Diamonds experienced an improving trend in the second half of the year as its operating performance stabilized.

Forward Outlook

Petra Diamonds remains steadfast in its fiscal 2024 guidance, projecting a total of 2.9 million to 3.2 million carats recovered. The company also reaffirmed its cost and capital expenditure guidance.

Chief Executive Richard Duffy expressed confidence in the company's resilience in the short-term and its strong position to leverage the supportive diamond market fundamentals in the medium to longer term.