Petra Diamonds Ltd. (PDL: LN) (OTC: PDMDF) has received a continued Market Perform rating and a price target of GBP0.40 from BMO Capital.
The firm's analysis followed Petra Diamonds' recent announcement of its Q1/F25 operating results, which includes the period ending June of the next fiscal year.
The report highlighted that the company's diamond production did not meet expectations, primarily due to operational changes at its Finsch mine.
The company's revenue for Q1/F25 was also influenced by a strategic decision to defer Tender 1 because of weaker demand in the market.
This postponement was noted as a response to the current economic environment affecting the diamond industry. Petra Diamonds later conducted a combined tender in October 2024, which saw a recovery in sales.
During the combined Tender 1-2, Petra Diamonds experienced an incremental increase in average diamond prices, which was attributed to a change in the product mix offered. This positive development was somewhat balanced by a slight decrease in the prices of like-for-like rough diamonds.
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