Petra Diamonds’ annual revenue up 44% on US demand for gemstones

July 19 (Reuters) – Petra Diamonds (PDL.L) on Tuesday reported a 44% rise in full-year revenue to $585.2 million, driven by rising gemstone prices, an increase exceptional stones and record demand for jewelry in the United States.

The company, which operates three mines in South Africa and one in Tanzania, sold 11% fewer diamonds in the financial year ended June 30 but was boosted by a 41.5% rise in diamond prices. diamonds and strong retail demand for jewelry in the United States. Sales of exceptional stones – which the company defines as rough diamonds worth at least $5 million – rose 44% to $89.1 million from a year earlier.

Petra said that while the diamond market was strong, macroeconomic uncertainties caused by rising inflation could potentially dampen demand and increase operational costs.

“We are monitoring cost increases in our operations very closely, but our relatively low fuel consumption, disciplined cost management, three-year labor agreements until June 2024 and exposure to a stronger South African rand will help us better absorb these cost pressures.” Petra chief executive Richard Duffy said in a statement.

Petra said it was assessing potential buyers for its Koffiefontein mine in South Africa, after announcing plans to sell it in April. The mine, which contributed less than 4% of revenue and 1% of diamonds sold in the past fiscal year, is nearing end of life in 2025 under the current mine plan.

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Reporting by Nelson Banya, editing by Louise Heavens

Our standards: The Thomson Reuters Trust Principles.

Sarah C. Figueiredo