London-listed Petra Diamonds has had a good start to its 2025 financial year, with an increase in production to 679 625 ct for the quarter ended September 30, on the back of higher grades at the Cullinan and Williamson mines, as well as higher tonnages at the Williamson mine.

The higher production compares with the 636 743 ct produced in the quarter ended June 30.

The company advises that the phased ramp-up of the 78-Level Phase 2 project has been completed at the Finsch mine, with tonnes treated already having increased by 7% in the quarter and grade control measures poised to contribute to higher grades at the mine soon.

Petra’s revenue for the quarter under review amounted to $23-million, compared with revenue of $113-million in the preceding quarter, owing to the deferral of the majority of the goods that were meant to be sold in the company’s first tender of the year.

The first and second tenders have since closed, yielding $76-million in revenue from 600 000 ct sold. The average prices increased by 13% compared with the last tender of the 2024 financial year, with product mix contributing 22% that was partially offset by a 9% decrease in like-for-like prices – with weakness having been evident in smaller size fractions.

CEO Richard Duffy comments that Petra’s combined first and second tenders indicate continued weakness in the rough diamond market, which was fortunately offset by Petra’s product mix.

“Product mix improved across our operations [in the reporting quarter], particularly with the Cullinan mine having produced an 18.85 ct blue diamond of exceptional quality, as well as a 405 ct top light brown diamond of exceptional clarity.”

Meanwhile, the group’s sale of the Koffiefontein mine, in South Africa, to the Stargems Group will prevent Petra incurring closure-related costs of at least $15-million at the mine.

The company is reviewing more cash generation opportunities to mitigate the impact of ongoing weakness in the diamond market, as well as a stronger rand, which typically impacts on Petra’s dollar-denominated costs.

“We remain committed to our target of net cash generation for the full year, especially as prices are expected to improve in the 2025 calendar year and market fundamentals are expected to be supportive in the medium- to long-term,” Duffy concludes.

The company’s Cullinan and Finsch mines are located in South Africa, while the Williamson mine is in Tanzania.