Whole on-mine money prices in FY 2024 elevated 11% in comparison with FY 2023, largely because of the ramp-up at Williamson mine in Tanzania, in addition to price inflation.
A build-up of diamond stock in FY 2023 of $34 million and a subsequent launch in FY 2024 of $37 million contributed to adjusted mining and processing prices rising from $202 million in 2023 to $296 million this 12 months, Petra mentioned.
The outcomes, based on chief govt officer Richard Duffy, mirror the corporate’s profitable response to weaker market circumstances, which included strategic changes to cut back money expenditure by $75 million. This was achieved by deferring capital growth tasks and implementing sustainable cost-reduction measures.
Duffy famous that that operational shift at its Finsch mine in South Africa additionally helped the underside line. The mine transitioned from a 2.8 million tonnes each year (Mtpa) operation to a extra streamlined 2.2Mtpa, with elevated concentrate on planning and upkeep.
Petra believes costs will stabilize by way of the tip of calendar 12 months 2024, helped by seasonal larger demand, with some enchancment anticipated in CY 2025.
Regardless of market challenges, Petra stays assured in its FY 2025 outlook. The corporate’s South African mines, now accessing recent ore from newly developed mission areas, alongside the Williamson mine in Tanzania, which is working at full manufacturing, are central to this optimism.
Petra’s efforts to clean its capital expenditure profile, coupled with a $44 million annual discount in working prices, place it without spending a dime money circulate era beginning in FY 2025. This price discount contains $30 million in financial savings from its South African operations and $14 million from Williamson.
The diamond producer didn’t announce dividends, however mentioned the board will assessment this resolution by the tip of fiscal 12 months 2025.
Addressing market circumstances, Duffy expects some the sector will see enhancements in CY 2025 as elevated self-discipline amongst diamond producers ought to assist re-balance stock ranges throughout the availability chain.
Traceability and sustainability
Petra is advancing its technological capabilities, with a concentrate on traceability. The corporate is rolling out know-how at its South African operations that can enable for the traceability of gem-quality diamonds over 0.5 carats, from mine to retail. This initiative is designed to supply shoppers better assurance concerning the provenance and sustainability of the diamonds they buy.
“We consider traceability applied sciences will additional differentiate pure diamonds by highlighting their rarity, uniqueness, and the advantages to stakeholders,” Duffy mentioned. The know-how can even emphasize Petra’s sustainability efforts, together with social and neighborhood tasks funded by way of diamond gross sales.