FOR IMMEDIATE RELEASE
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$4.3 million of Finsch diamonds
sold during H1 FY 2023, both of which were reported in our Interim
Results announcement during February
2023. No sales for Williamson were recorded in this cycle
given the operations at the mine are still suspended.
Rough diamond sales results for the respective periods are set
out below:
|
Tender 4 FY23
Mar-23 |
Tender 3 FY23
Dec-22 |
Variance
T3 FY23 vs
T4 FY23 |
Tender 4 FY22
Feb-22 |
YTD
FY 2023
after
Tenders
1-4 |
YTD
FY 2022
after
Tenders
1-4 |
Diamonds sold (carats) |
505,398 |
305,366 |
+66% |
735,222 |
1,778,051 |
2,331,070 |
Sales (US$ million) |
72.1 |
42.3 |
+71% |
140.6 |
278.5 |
405.3 |
Average price (US$/ct) |
143 |
138 |
+3% |
191 |
157 |
174 |
Revenue from
Exceptional Stones[2] (US$ million) |
7.0 |
– |
100% |
5.5 |
7.0 |
83.4 |
[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
FY23
Mar-23 |
Tender 3
FY23
Dec-22 |
Tender 4
FY22
Feb-22 |
YTD
FY 2023
after
Tenders 1-4 |
YTD
FY 2022
after
Tenders 1-4 |
FY
2022
12 months to
30 June 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.