Petra Diamonds, a leading gemstone miner, announced on Tuesday that it failed to meet its diamond production target for fiscal 2023, resulting in a decline in revenue for the year. The company’s revenue from diamond sales decreased by 44% to $328.4 million in the fiscal year ended June 30, compared to $584.1 million in the previous fiscal year.

The drop in revenue was primarily driven by a decrease in the contribution from rough diamonds, which amounted to $12.6 million, down from $89.1 million in the prior year. This decline was a result of both a 34% reduction in rough diamonds sold and a 20% decrease in the amount of diamonds recovered. Furthermore, the company had to postpone its scheduled sixth diamond tender from June to fiscal 2024.

Total diamond production for the year declined to 2.67 million carats, primarily due to a 5% decrease in fourth-quarter production compared to the third quarter. This fell short of the guided range of 2.75 million carats to 2.85 million carats. In fiscal 2022, the company produced 3.35 million carats.

Looking ahead, Petra Diamonds forecasts a total of 2.9 million to 3.2 million carats to be recovered in fiscal 2024.

“We anticipate a favorable diamond market in the medium to longer term due to the structural supply deficit, which will benefit our strong growth profile,” stated Chief Executive Richard Duffy.

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