Petra hails 'watershed' year as revenues jump

Revenues in the year to 30 June rose 65% to $402.3m, while adjusted earnings before interest, tax, deductibles and amortisation were £135.4m, against £67.3m a year previously. Output for the year decreased 2% to 3.24m carats.

The adjusted pre-tax net loss narrowed to £8.9m from £74.0m, while pre-tax profits came in at £196.6m, against last year’s loss of £223m.

Richard Duffy, chief executive, said: "The 2021 full year was a watershed year for Petra. Besides the challenges of the Covid-19 pandemic, we completed a capital restructuring which, together with the sale of a number of exceptional blue and white diamonds from the Cullinan mine, served to reduce consolidated net debt by around two thirds, to $228.2m.

"We now have a more stable capital structure, considerably reduced debt obligations and greater liquidity."

Looking ahead to the current year, the firm conceded that the pandemic remained an "ongoing business challenge" following a third wave of infections in South Africa.

But Duffy said the strong recovery seen in the diamond market during the fourth quarter had continued into the new year, which had "further bolstered our improved financial position".

"We enter the 2022 full year with some momentum from a considerably strengthened balance sheet, ongoing optimisation of our asset base and a positive outlook for the diamond market," he said.

Shares in Petra, which has three underground mines in South Africa and one open pit mine in Tanzania, were ahead 3% at 1.78p as at 1230 BST.