South Africa’s Petra Diamonds (LON:PDL) became Monday the latest victim of a weak demand for precious stones that’s crippling the industry after reporting full-year revenue below analysts’ estimates.
The company, owner of the iconic Cullinan mine in South Africa, where the world’s biggest-ever diamond was found in 1905, also said it anticipated that next year’s production would be slightly lower.
It expects to produce about 3.8 million carats in 2020, slightly down from the 3.9 million carats it generated for the year ended June 30.
It now expects to produce about 3.8 million carats in 2020,
compared to the 3.9 million carats it generated for the year ended June 30.
Petra, which recently appointed former gold miner Richard
Duffy as chief executive, has been seeking to turn around its fortunes after piling up debt to expand Cullinan. It said it
was targeting $150 million to $200 million of free cash flow over the next
three years.
In the past year, diamond miners have had a hard time as
demand remains weak, while supply, especially for smaller and cheaper stones,
has increased.
Last week, the world’s biggest miner of precious stones, De Beers, also reported an output drop and cut guidance for the year.