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Petra Diamonds Ltd - London-based diamond miner focused on South Africa and Tanzania - Produces and sells fewer diamonds in first quarter as net debt widens and revenue falls. In the first quarter that ended September 30, revenue falls 10% to $102.9 million from $114.9 million a year prior. Diamond sales decline by 10% to 520,011 carats from 578,186 a year ago, while diamond production falls 13% to 763,220 carats from 876,411. The firm notes that lost time injury frequency rate in the quarter improved by 48% to 0.16 compared to 0.31 a year ago.
Net debt grows by 91% to $77.6 million at September 30 from $40.6 million at June 30, as the company's tender cycle led to a rise in inventory.
Petra says that while its cost base benefits from a weaker South African rand, it still is impacted by inflation. It also is wary of the impact of sanctions on Russian producers and of Covid-related lockdowns in China, but it is confident in its ability to generate cash to fund capital expenditure.
Current stock price: 112.01 pence, down 2.6% on Tuesday
12-month change: up 32%
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