Petra Achieves $72.1 million in Sales in Fourth tender Cycle for FY 2023

Rough MarketFinance and Trade

Petra announces the results of Tender 4 of FY 2023, at which 505,398 carats were sold for a total of US$72.1 million from Petra’s South African operations.

This cycle includes a US$7 million Exceptional Stone2 from the Cullinan Mine and US$4.3 million of Finsch diamonds sold during H1 FY 2023, both of which were reported in our Interim Results announcement during February 2023. No sales for Williamson were recorded in this cycle given the operations at the mine are still suspended.

The results of Tender 4 bring FY 2023 YTD revenue from rough diamond sales to US$278.5 million, including US$7 million from Exceptional Stone sales, compared to US$405.3 million in the first four tenders of FY 2022, which included a US$83.4 million contribution from Exceptional Stones. The comparative fourth tender in FY 2022 closed around the Russian invasion of Ukraine which saw prices temporarily spike at that specific tender. The lower volume sold in Tender 4 FY 2023 relative to the equivalent tender last year was driven by lower production from the South African operations, and no production from the Tanzanian operation, with Williamson currently suspended pending the restart planned for Q1 FY 2024.

Richard Duffy, Chief Executive Officer of Petra Diamonds (Petra), said:“Petra’s fourth tender for FY 2023 saw a 12.5% increase in like-for-like prices on Tender 3 FY 2023, confirming the improving trend observed in the previous tender. We ascribe the positive pricing trends to a recovery in demand from China as COVID-19 restrictions continue to dissipate, coupled with a more buoyant outlook from the recent Hong Kong International Jewellery Show. Stronger demand from major jewellery brands has also supported prices for smaller goods. Solid demand for coloured stones across all size ranges was evident in this cycle leading to improved pricing.We continue to expect a supportive diamond market in the medium to longer-term as a result of the structural supply deficit. Current levels of demand remain robust, though we are cognisant of possible near-term volatility owing to recent geopolitical and macroeconomic uncertainty.”

Source: Petra