Petra Diamonds has reported full-year revenue below expectations and said it expects next year’s production to be slightly lower as well.
The diamond firm says it is struggling with a diamond market hit by weak demand and lack of easy credit.
Revenue for the year ending June 30, 2019, fell by 6% to $463.6m (£372.7m), down from $495.3m (£398.2m) in the year prior.
Petra’s realised diamond prices decreased by 5% per carat in line with market movement during the period.
Production increased slightly to 3.87m carats, up from 3.84m carats, which the company said was in line with its guidance.
The diamond miner expects an annual production output of about 3.8 million carats during the 2020 financial year.
Total mine costs are expected to remain flat in 2020, with inflationary pressures partially offset by lower tailings production and a group-wide focus on streamlining operations.
“Petra delivered solid results in both a difficult market and during its continued transition from a period of high capital investment to a steady state operational phase,” says chief executive of Petra Diamonds, Richard Duffy.
He adds: “The focus in the short term is on driving efficiencies across the business through Project 2022 to provide a stable, consistent operating platform off which to drive improvements, supported by an appropriate organisational structure and cost base to enhance our cash flow generation and significantly reduce our net debt.”