Petra Diamonds Limited has released its Q3 FY 2024 Operating Update and Final Sales Results for Tender 5 FY 2024. The company's CEO, Richard Duffy, confirmed that production for the quarter is consistent with the preceding quarter and in-line with expectations. The company's fifth tender cycle yielded US$49 million from the sale of 362kcts, with average prices per carat received being 22% higher than Tender 4. Petra also announced the signing of a definitive transaction agreement for the sale of Koffiefontein, which is expected to result in Petra avoiding closure-related costs of US$15-18 million.
The company also reported an increased cost savings target of more than US$30 million per annum, with around half of these savings expected to come through a rebasing of fixed and variable costs in-line with reduced throughput at Finsch. Petra repaid US$23m of its RCF to reduce interest costs and had available liquidity of US$104 million at the end of Q3 FY 2024. The company's consolidated net debt increased to US$232 million as at 31 March 2024, due to the timing of closing Tender 5, noting the balance of sales receipts yielded US$32 million shortly after period-end which exceeded the increase in net debt.
The final sales results for Tender 5 FY 2024 closed with 362kcts sold yielding US$49 million, with average prices increasing 22% over Tender 4, noting a marginal 0.8% decrease in like-for-like prices. The sales results also include a 14.76ct exceptional colour and clarity blue gemstone recovered from the Cullinan Mine, which the company sold into a partnership agreement with sale proceeds of US$8.2 million. Total revenue YTD FY 2024 from rough diamond sales is US$285 million, compared to US$316 million in the first five tenders of FY 2023, excluding Koffiefontein. Mine by mine average prices for the respective periods were also provided.