Petra Diamonds Limited has released its operating results for the first half of FY 2024. The company's Chief Executive Officer, Richard Duffy, expressed optimism about the 2% increase in production during this period, attributing it to the stabilization of operations at Finsch and Cullinan Mines and the ramp-up of production at Williamson. Despite expecting production to be towards the lower end of the guidance, the company remains on track to meet its FY 2024 production target of 2.9 - 3.2 million carats.
The company reported a decrease in Lost Time Injury Frequency Rate (LTIFR) and Lost Time Injuries (LTIs) to 0.15 and 5 respectively. Ore processed increased by 8% to 5.8Mt, primarily due to the successful ramp-up of production at Williamson. Total diamond production increased by 2% to 1.43 million carats, with support from a weaker South African Rand throughout the period.
However, the company's revenue amounted to US$187.8 million, down from US$208.5 million in H1 FY 2023. The company attributed this to a 13.3% decrease in like-for-like prices compared to H1 FY 2023 sales, with the balance of price movements attributable to product mix. The consolidated net debt increased to US$212.3 million as at 31 December 2023, due to various factors including the timing of closing the company's sales tenders and the continued lower diamond pricing environment.
Petra's CEO and CFO will host webcasts for institutional investors and analysts to discuss the operating update. The company also plans to present the results live on the Investor Meet Company platform, aimed at retail investors.
In conclusion, Petra Diamonds Limited has shown progress in production and safety measures in the first half of FY 2024, despite challenges in revenue and net debt. The company remains cautiously optimistic about the diamond market and is focused on flexible sales approaches to position itself for potential market improvements.