Morning Bites

💎Petra Diamonds sales for fiscal year 2024 (ended June 2024) increased 13% YoY, per a company press release. Petra sold 3.2mnct during the year (+36% YoY), but with lower avg. realised prices (-17% YoY to USD 116/ct), attributable to a 12% decline in LFL prices, as well as product mix changes

Adj. EBITDA fell to USD 66mn (-42% YoY), representing a margin of 18% (vs. 35% in FY 2023 ). However, at spot, the margin might be more stressed, as diamond prices are lower than the fiscal 2024 average. Meanwhile, FCF remained negative, even though the company has cut capex with the deferral of some projects

According to Petra's CEO Richard Duffy, management sees supportive market fundamentals in the medium and longer term, expecting diamond prices to stabilise by YE24 and increase YoY in 2025, which is in-line with our view

We maintain our view that solid downstream demand might speed-up the release of industry’s inventories in 4Q24

#diamonds
https://metals-wire.com/sector/Diamonds