(Kitco News) - South Africa-focused diamond miner Petra Diamonds (LSE: PDL) reported today that its production for the year ended 30 June 2022 (FY 2022) increased 3% y-o-y to 3,353,670 carats, largely owing to the resumption of mining at Williamson.
The company’s FY 2022 total revenue amounted to US$585.2 million (FY 2021: US$406.9 million), comprising revenue from diamond sales of US$584.1 million (FY 2021: US$406.9 million) and additional revenue from profit share agreements of US$1.1 million (FY 2021: nil).
Petra explained that 44% growth in revenue from diamond sales to US$584.1 million for FY 2022 (FY 2021: US$406.9 million) was driven in part by the increased number of Exceptional Stones sold, totalling US$89.1 million (FY 2021: US$62.0 million). Revenue also benefited from a 41.5% increase in like-for-like diamond prices in FY 2022.
The company’s adjusted EBITDA rose 103% to US$264.9 million with an adjusted EBITDA margin of 45% reflecting the strong revenue growth and positive operational leverage, supported by the recovery of Exceptional Stones.
Adjusted net profit after tax rose to US$102.0 million (reversing a US$25.5 million adjusted net loss after tax last year). Net profit after tax fell 55% to US$88.1 million largely driven by a prior year gain of US$213.3 million on the extinguishing of the Notes as part of the Group’s capital restructuring.
Adjusted basic earnings per share were USc42.93, up 219% y-o-y, while operational free cash flow rose 91% to US$230.0 million driven by increased EBITDA.
The company pointed out that its consolidated net debt reduced 82% to US$40.6 million which is 0.15x EBITDA, reflecting strong free cash flow generation.
Importantly, Petra said that despite significant global economic uncertainties resulting from the war in Ukraine, like-for-like rough diamond prices increased 41.5% for the full year to 30 June 2022, driven in particular by record jewellery retail demand in the US.
“The diamond market remains broadly supportive as a result of the prevailing structural supply deficit, although ongoing macro-economic uncertainties may lead to some volatility in the short term,” the company noted in a press-release.
Petra Diamonds is a leading independent diamond mining group and a supplier of gem quality rough diamonds to the international market. The company’s portfolio incorporates interests in three underground producing mines in South Africa (Finsch, Cullinan Mine and Koffiefontein) and one open pit mine in Tanzania (Williamson).
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