FOR IMMEDIATE RELEASE
13 December 2022 |
LSE: PDL |
Sales results for
Tender 3 FY 2023
Petra achieves
US$42.3 million in sales in its third
tender for FY 2023
Richard Duffy, Chief Executive
Officer of Petra Diamonds (Petra), said:
“Petra’s third tender for FY 2023 saw a 2.2% increase in
like-for-like[1] prices on Tender 2 FY 2023,
reversing the downward trend observed in the previous two tenders.
Although it is still too early to speculate on whether rough
diamond prices have bottomed out, we are very satisfied with the
overall result. Prices in the 2ct to
10ct size ranges saw an upward movement in contrast to the
recent negative trends, partly ascribed to improving expectations
for the current festive season and potentially reflecting signals
from the Chinese authorities with respect to an easing of lockdown
restrictions. Prices in smaller size ranges saw improved pricing
which more than offset softer pricing in the 0.75ct to 2ct
ranges.
We continue to expect a supportive
diamond market in the medium to longer term as a result of the
structural supply deficit and see current levels of demand
continuing into the New Year, albeit with the potential for further
upside from any easing of lockdown restrictions in China.”
Petra announces the results of Tender 3 of FY 2023, at which
305,366 carats were sold for a total of US$42.3 million across Petra’s mining
operations.
Rough diamond sales results for the respective periods are set
out below:
|
Tender 3 FY23
Dec-22 |
Tender 2 FY23
Oct / Nov-22 |
Variance
T2 FY23 vs
T3 FY23 |
Tender 3 FY22
Dec-21 |
YTD
FY 2023
after Tenders 1-3 |
YTD
FY 2022
after Tenders
1-3 |
Diamonds sold (carats) |
305,366 |
447,276 |
-32% |
885,136 |
1,272,653 |
1,595,848 |
Sales (US$ million) |
42.3 |
61.3 |
-31% |
128.3 |
206.4 |
264.7 |
Average price (US$/ct) |
138 |
137 |
+1% |
145 |
162 |
166 |
Revenue from
Exceptional Stones[2] (US$ million) |
– |
– |
– |
27.7 |
– |
77.9 |
Sales
The results of Tender 3 bring FY 2023 YTD revenue from rough
diamond sales to US$206.4 million,
with no Exceptional Stone sales, compared to US$264.7 million in the first three tenders of FY
2022, which included a US$77.9
million contribution from Exceptional Stones. The lower
volume sold in Tender 3 relative to the equivalent tender in FY
2022 was largely driven by the earlier cut-off date for the current
cycle.
Mine by mine average prices for the respective periods are set
out in the table below:
US$/carat |
Tender 3
FY23
Dec-22 |
Tender 2
FY23
Oct / Nov-22 |
Tender 3
FY22
Dec-21 |
YTD
FY 2023
after
Tenders 1-3 |
YTD
FY 2022
after
Tenders 1-3 |
FY
2022
12 months to
30 June 2022 |
Cullinan Mine |
116 |
113 |
1421 |
154 |
1921 |
1691 |
Finsch |
107 |
118 |
96 |
121 |
97 |
118 |
Williamson |
266 |
272 |
7601 |
280 |
7601 |
3841 |
Koffiefontein |
371 |
639 |
520 |
450 |
538 |
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 improved by 2.2% on
Tender 2 FY 2023, they increased 7.4% compared to Tender 2 of FY
2022, with YTD prices up 12.7% compared to the comparable three
tenders of FY 2022. Prices across all size ranges were generally up
against the previous tender with the exception of the 0.75ct to 2ct
stones which saw a marginal decline in prices.
Product mix
The balance of price movements are attributable to product mix,
resulting in a slight increase at Cullinan while both Finsch and
Williamson saw downward price movements. The Williamson parcel
consisted of all diamonds produced in the period leading up to the
Tailings Storage Facility failure announced on 7 November 2022.
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 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.
[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