Petra Diamonds Ltd - Southern Africa-focused diamond miner and supplier - Cuts back capital expenditure plans for financial year 2024 by up to $65 million, in response to diamond market weakness. Last month, Petra reported a 17% decline in prices at its second tender of stones for the financial year. The spending cuts include deferrals of work programmes at the Cullinan and Finsch mines in South Africa, as well as the deferral of $3 million to $5 million in sustaining capital expenditure compared to prior guidance. Petra also will cut operating costs by $7 million to $10 million. Petra is in talks with Absa Bank, part of Absa Group Ltd, in South Africa to increase its existing R 1 billion revolving credit facility by up to R 750 million, about $40 million. A decision in-principle is expected during November.
‘Actions announced today in response to the diamond market weakness are aimed at ensuring Petra remains resilient and able to withstand weaker-for-longer market conditions,’ says Chief Executive Officer Richard Duffy.
Petra expects production in financial 2024, which ends on June 30 next year, to be at the lower end of its prior guidance range of 2.9 million to 3.2 million carats.
Current stock price: 44.71 pence
12-month change: down 60%
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