Petra Diamonds Limited has released its preliminary results for the fiscal year 2023. Despite some operating challenges, the company demonstrated improved resilience and a strengthened balance sheet. Production for the year was 2.67 million carats, slightly below revised guidance, but showed an improving trend in the second half. The Williamson mine restarted production ahead of schedule in July 2023. The company successfully repurchased over one-third of its 2026 loan notes, reducing future interest costs and strengthening the balance sheet. Petra delayed the sales of some diamonds from its last two tenders of FY 2023 in anticipation of improved pricing.
The first tender of FY 2024 reflected softer market conditions due to macro-economic uncertainties. The economic outlook for CY 2024 is more subdued, but Petra believes the prevailing structural supply deficit of diamonds will provide market support in the medium to longer term. The company has taken actions to strengthen its business and improve cash flow generation, positioning itself to leverage supportive diamond market fundamentals.
In terms of financials, FY 2023 revenue amounted to US$325.3 million, down from US$563.7 million in FY 2022. The average realized price per carat was US$139, a 14% decrease from the previous year. Adjusted EBITDA reduced to US$113.1 million, representing a margin of 35%. Adjusted net loss was US$2.3 million, down from a US$115.2 million profit in FY 2022. Operational free cash outflow was US$66.5 million, compared to a US$230.0 million inflow in the previous year. Consolidated net debt increased to US$176.8 million.
The company's ongoing focus is on sustainability and maintaining a zero harm working environment.