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$61.3 million across Petra’s mining
operations.
Rough diamond sales results for the respective periods are set
out below:
|
Tender 2 FY23
Oct / Nov-22 |
Tender 1 FY23
Sep-22 |
Variance
T1 FY23 vs
T2 FY23 |
Tender 2 FY22
Oct-21 |
YTD
FY 2023
after
Tenders
1&2 |
YTD
FY 2022
after
Tenders
1&2 |
Diamonds sold (carats) |
447,276 |
520,011 |
-14% |
132,525 |
967,287 |
710,712 |
Sales (US$ million) |
61.3 |
102.9 |
-40% |
21.5 |
164.1 |
136.4 |
Average price (US$/ct) |
137 |
198 |
-31% |
162 |
170 |
192 |
Revenue from
Exceptional Stones[2] (US$ million) |
– |
– |
– |
– |
– |
50.2 |
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
FY23
Oct / Nov-22 |
Tender 1
FY23
Sep-22 |
Tender 2
FY22
Oct-21 |
YTD
FY 2023
after
Tenders 1&2 |
YTD
FY 2022
after
Tenders 1&2 |
FY
2022
12 months to
30 June 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.