Petra Diamonds Reports Weak First Half

Petra Diamonds faced challenges in the fiscal first half, resulting in a significant pretax loss as a consequence of weaker diamond prices. The London-based company disclosed a pretax loss of $15.9 million for the half year ending on Dec. 31, a sharp decline from the $2.8 million profit reported in the same period the previous year. This shift was mainly attributed to a notable 29% decrease in the average realized price per carat, which fell to $113.

Market Outlook and Cost-Cutting Measures

CEO Richard Duffy expressed caution regarding the recovery of diamond prices, emphasizing that while they believe prices have stabilized, the upward trend may be slower than anticipated. Despite these challenges, the company remains optimistic about the market in the medium to long-term. To address the current situation, Petra Diamonds plans to implement additional cost-cutting measures, with detailed results expected to be announced at an upcoming investor event.

Revised Production Outlook

In response to the market conditions, the South Africa-focused miner adjusted its full-year production forecast to a range of 2.75 million-2.85 million carats. This revision is lower than the previously projected 2.9 million-3.2 million carats, reflecting the impact of reduced diamond prices on operational output. The company's revenue also saw a decline, dropping to $187.8 million from $208.5 million in the corresponding period.

For more information on Petra Diamonds' financial performance and strategic initiatives, stay tuned for further updates from the company.