Petra Diamonds Sales results for Tender 4 FY 2023

 
TIDMPDL 
 
FOR IMMEDIATE RELEASE 
 
15 March 2023                                                              LSE: PDL 
 
                      Sales results for Tender 4 FY 2023 
 
Petra achieves US$72.1 million in sales in its fourth tender cycle for FY 2023 
 
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[1] 
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." 
 
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 our 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. 
 
Rough diamond sales results for the respective periods are set out below: 
 
                Tender 4  Tender 3  Variance  Tender 4     YTD FY 2023        YTD FY 2022 
                  FY23      FY23     T3 FY23    FY22          after              after 
                 Mar-23    Dec-22      vs      Feb-22             Tenders             Tenders 
                                     T4 FY23                   1-4                1-4 
 
Diamonds sold   505,398   305,366     +66%     735,222      1,778,051          2,331,070 
(carats) 
 
Sales (US$        72.1      42.3      +71%      140.6         278.5              405.3 
million) 
 
Average price     143       138        +3%       191           157                174 
(US$/ct) 
 
Revenue from      7.0        -        100%       5.5           7.0               83.4 
Exceptional 
Stones[2] (US$ 
million) 
 
[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 
 
Sales 
 
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. 
 
Mine by mine average prices for the respective periods are set out in the table 
below: 
 
US$/carat       Tender 4    Tender 3     Tender 4   YTD FY 2023   YTD FY    FY 2022 
                  FY23        FY23         FY22        after       2022    12 months 
                 Mar-23      Dec-22       Feb-22    Tenders 1-4   after        to 
                                                                 Tenders    30 June 
                                                                   1-4        2022 
 
Cullinan Mine     1541         116         1801        1541        1881       1691 
 
Finsch            121          107         151          121        112        118 
 
Williamson        n/a          266         369          280        4881       3841 
 
Koffiefontein     461          371         856          452        612        581 
 
Note 1: Prices for both Cullinan Mine and Williamson include proceeds from the 
sale of Exceptional Stones. 
 
Like-for-like prices 
 
Like-for-like rough diamond prices improved by 12.5% on Tender 3 FY 2023 driven 
by double-digit increases in all categories, except for the 2 to 5ct size 
ranges which increased by some 3.5%. Prices decreased by 11.9% compared to 
Tender 4 of FY 2022 reflecting the significant, but temporary, upward price 
movements seen at the commencement of the Russian/Ukraine conflict. 
Notwithstanding this spike, YTD prices are marginally up by 0.2% compared to 
the equivalent four tenders of FY 2022. 
 
Product mix 
 
The balance of price movements  are attributable to product mix, resulting in 
an increase at Cullinan Mine, supported by the Exceptional Stone, but downward 
price pressure at Finsch in this cycle. Koffiefontein sales comprised the final 
1,927 carats of diamonds recovered prior to steps being taken to place the mine 
on care and maintenance. 
 
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 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. 
 
 
 
END
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