Petra Diamonds Sales Results for Tender 2 FY2023

 
TIDMPDL 
 
24 November 2022                                                           LSE: PDL 
 
                            PETRA DIAMONDS LIMITED 
 
                      Sales results for Tender 2 FY 2023 
 
   Petra achieves US$61.3 million in sales in its second tender for FY 2023 
 
Richard Duffy, Chief Executive Officer of Petra Diamonds (Petra), said: 
 
"This is a creditable result in the current somewhat muted market, with 
like-for-like[1] prices 12.6% higher compared to Tender 2 of FY 2022 and 5.1% 
lower than Tender 1 of FY 2023. Demand for fancy coloured and large white 
stones continued to be evident despite this being a seasonally weaker period. 
Subdued demand in China continued to impact pricing in the gem quality 0.75ct 
up to 5ct size ranges, with some pricing pressure also evident in the 5ct - 
10ct range. Pricing across smaller size ranges was largely flat on the previous 
tender. 
 
Although we continue to expect a supportive diamond market in the medium to 
longer term as a result of the structural supply deficit, we see current levels 
of demand continuing into the New Year, albeit with the potential upside of 
festive season sales and any easing of lockdown restrictions in China." 
 
Petra announces the results of Tender 2 of FY 2023, at which 447,276 carats 
were sold for a total of US$61.3 million across Petra's mining operations. 
 
Rough diamond sales results for the respective periods are set out below: 
 
                 Tender 2  Tender 1  Variance  Tender 2     YTD FY 2023        YTD FY 2022 
                   FY23      FY23     T1 FY23    FY22          after              after 
                  Oct /     Sep-22      vs      Oct-21             Tenders             Tenders 
                  Nov-22              T2 FY23                   1&2                1&2 
 
Diamonds sold    447,276    520,011    -14%     132,525       967,287            710,712 
(carats) 
 
Sales (US$         61.3      102.9     -40%      21.5          164.1              136.4 
million) 
 
Average price      137        198      -31%       162           170                192 
(US$/ct) 
 
Revenue from        -          -         -         -             -                50.2 
Exceptional 
Stones[2] (US$ 
million) 
 
Sales 
 
Volumes for the second tender cycle are typically lower than the first tender 
cycle given the respective cut-off dates for these cycles. As previously 
announced, the final closure for Tender 2 FY 2023, originally planned towards 
the second half of October, was extended as a result of unusual market 
conditions with some build up in inventory pre-Diwali. This extension resulted 
in an overall price increase of around 6.4% on the affected parcels. Our third 
sales tender for FY 2023 is currently planned to close early December 2022 
although we will continue to be flexible in our approach. 
 
[1] Like-for-like refers to the change in realised prices between tenders and 
excludes revenue from all single stones and Exceptional Stones, while 
normalising for the product mix impact 
 
[2] Petra classifies "Exceptional Stones" as rough diamonds which sell for US$5 
million or more each 
 
The results of Tender 2 bring FY 2023 revenue from rough diamond sales to 
US$164.1 million, with no Exceptional Stone sales YTD, compared to US$136.4 
million in the first two tenders of FY 2022, which included a US$50.2 million 
contribution from Exceptional Stones. 
 
Mine by mine average prices for the respective periods are set out in the table 
below: 
 
US$/carat       Tender 2    Tender 1     Tender 2   YTD FY 2023   YTD FY    FY 2022 
                  FY23        FY23         FY22        after       2022    12 months 
              Oct / Nov-22   Sep-22       Oct-21    Tenders 1&2   after        to 
                                                                Tenders 1&  30 June 
                                                                    2         2022 
 
Cullinan Mine     113          212         2141         165        2451       1691 
 
Finsch            118          132         109          126         99         77 
 
Williamson        272          297         n/a          286        n/a        3841 
 
Koffiefontein     639          383         461          477        562        581 
 
Note 1: Prices for both Cullinan Mine and Williamson include proceeds from the 
sale of a number of Exceptional Stones. 
 
Like-for like prices 
 
Whilst like-for-like rough diamond prices declined by 5.1% on Tender 1 FY 2023, 
they increased 12.6% compared to Tender 2 of FY 2022, with YTD prices up 19.0% 
on a like-for-like basis compared to the first two tenders of FY 2022. 
 
Product mix 
 
The balance of price movements are attributable to product mix, particularly 
for the Cullinan Mine, where the previous tender cycle benefited from an 
increased number of high value stones, which largely normalised in Tender 2 
resulting in a lower overall price per carat. 
 
For further information, please contact: 
 
Petra Diamonds, London                 Telephone: +44 20 7494 
8203 
 
Patrick Pittaway 
investorrelations@petradiamonds.com 
 
Julia Stone 
 
About Petra Diamonds Limited 
 
Petra Diamonds is a leading independent diamond mining group and a supplier of 
gem quality rough diamonds to the international market. The Company's portfolio 
incorporates interests in three underground producing mines in South Africa 
(Finsch, Cullinan Mine and Koffiefontein) and one open pit mine in Tanzania 
(Williamson). 
 
Petra's strategy is to focus on value rather than volume production by 
optimising recoveries from its high-quality asset base in order to maximise 
their efficiency and profitability. The Group has a significant resource base 
of 226.6 million carats, which supports the potential for long-life operations. 
 
Petra strives to conduct all operations according to the highest ethical 
standards and only operates in countries which are members of the Kimberley 
Process. The Company aims to generate tangible value for each of its 
stakeholders, thereby contributing to the socio-economic development of its 
host countries and supporting long-term sustainable operations to the benefit 
of its employees, partners and communities. 
 
Petra is quoted with a premium listing on the Main Market of the London Stock 
Exchange under the ticker 'PDL'. The Company's loan notes due in 2026 are 
listed on the Irish Stock Exchange and admitted to trading on the Global 
Exchange Market. For more information, visit www.petradiamonds.com. 
 
 
 
END
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