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Petra Diamonds books $223m loss as pandemic hurts production
StockMarketWire.com
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Gem miner Petra Diamonds booked another deep annual loss after its revenue fell and it wrote down the value of its assets.
Net losses for the year through June amounted to $223.0 million, compared to losses of $246.6 million year-on-year.
The most recent loss included a $91.9 million impairment charge, pinned partly on reduced diamond pricing assumptions.
Revenue fell 36% to $295.8 million, while adjusted earnings before interest, tax, depreciation and amortisation dropped 58% to US$64.8 million.
Production fell 7% to 3.59 million carats following the negative impact of Covid-19 measures that applied in the third and fourth quarters of the company's financial year.
Petra Diamonds, which last month announced recapitalisation plans, said production guidance for the current financial year remained suspended due to uncertainty created by the pandemic.
The Williamson mine in South Africa remained on care and maintenance, as had been the case since April.
'This situation is under continual review and the company will look to commence production again as soon as market conditions support it,' Petra Diamonds said.
Chief executive Richard Duffy said that while the company had faced unprecedented challenges in 2020, he was pleased with its operational performance, including via planned "Project 2022" efficiency gains.
'This, combined with our highly valued people, world-class asset base and the agreement in principle reached with our noteholders and lender group on our long-term capital structure, provides a sustainable future for the company, once operating conditions normalise,' Duffy said.
Story provided by StockMarketWire.com
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