Petra Diamonds Limited has reported improved diamond production in the first quarter of FY 2024. The company's CEO, Richard Duffy, stated that the increase in production was due to stabilizing operations at the Cullinan Mine and Finsch, as well as the resumption of production at Williamson ahead of schedule. He also mentioned that the actions taken by major producers to curb supply and the two-month Indian diamond import moratorium are expected to stabilize the market and support prices. However, the company is taking prudent steps to enhance its business resilience in light of market challenges and uncertainties. This includes discussions with its first lien lender to upsize its existing Revolving Credit Facility and evaluating options to provide further financial flexibility.
In terms of operational performance, Petra maintained its improved safety performance, with LTIs and LTIFR remaining at 2 and 0.12, respectively. Total diamond production increased by 12% to 696,639 carats, mainly driven by the successful resumption of operations at Williamson. Revenue for the quarter totaled US$97.6 million, which included sales from Tender 1 and a portion of Tender 2. The company's unrestricted cash balances amounted to US$56.5 million, with a further US$33.0 million cash received from diamond debtors shortly after the period end. However, consolidated net debt increased to US$192.4 million due to the timing of closing the company's sales tenders, the lower diamond pricing environment, working capital funding for the resumption of mining at Williamson, and increasing capex spend.
Petra's production guidance for FY 2024 remains unchanged. The company will be hosting a webcast presentation for institutional investors and analysts to discuss the operating update, as well as a separate webcast for retail investors.