Petra Diamonds (LON: PDL) shares are rallying on Wednesday after the company revealed its revenue rose in FY 2021, with expectations for higher production in 2022.
Revenue increased 38% to $406.9 million in 2021, compared to $295.8 million in 2020. The company said the rise was driven by sales from exceptional stones (with a value of $5m or more), contributing US$60.2m during the year.
It was the highest annual contribution to revenues from the sale of exceptional stones despite the 34% fall in metric tons treated ad the 10% decline in total diamonds recovered.
Sponsored content
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
However, Petra expects a recovery in FY 2022, stating that production will increase to between 3.3 million to 3.6 million carats as discussions with the Government of Tanzania to reach an agreement on the issues at the Williamson mine ongoing, with a hope that they will be concluded in Q1 FY 2022.
The company also reduced its net debt to $241.2 million from $700.4 million following the completion of its capital restructuring in March.
Capital expenditure is expected to be between $78 million and $92 million during FY 2022.
“The Petra team has navigated a difficult FY2021 by delivering credible results whilst addressing numerous challenges around COVID-19 and the completion of our capital restructuring. This makes Cullinan’s record performance, driven by Project 2022, all the more noteworthy. We enter FY 2022 with a considerably strengthened balance sheet and a more supportive diamond market than we have seen for some time,” commented Richard Duffy, CEO of Petra Diamonds.
Petra Diamonds Daily Price Chart, Source: IG
The company’s shares are up 10.6% at 1.77p so far in Wednesday’s session.
Should You Invest in Petra Diamonds Shares?
One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It’s a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now
Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.
