TIDMPDL
RNS Number : 2970Q
Petra Diamonds Limited
17 October 2023
17 October 2023 LSE: PDL
Petra Diamonds Limited
("Petra" or "the Company")
Sales results for Tender 2 FY 2024
Following the initial results for the first c.75% of total
tender volume for this cycle announced on 6 October 2023, Petra
announces the full results of Tender 2 of FY 2024, at which 444,029
carats were sold for a total of US$40.5 million. This includes
37,856 carats of Williamson goods which were sold for US$7.7
million.
Richard Duffy, Chief Executive Officer of Petra, said:
"Petra has now concluded its second tender for FY 2024, which
included Williamson's first sale after restarting operations,
marking the start of the steady ramping up of carats available for
tender from this mine.
Like-for-like [1] prices for goods sold were down 16.9% compared
to Tender 1 held in August 2023 and in line with the 16% - 18%
range indicated in our initial results announcement, reflecting
prevailing market weakness. We believe actions taken by major
producers to curb supply and the two-month Indian moratorium will
assist in bringing stability and support to the market and prices
as inventory levels reduce. While we anticipate that prices will
remain volatile throughout CY 2023 and possibly into CY 2024, we
continue to expect prices to benefit in the medium to longer term
as a result of the structural supply deficit."
Rough diamond sales results for the respective periods are set
out below(1) :
Tender Tender Variance Tender YTD YTD
2 1 2 FY 2024 FY 2023
FY 2024 FY 2024 FY 2023 Tenders Tenders
Sep/Oct Aug 2023 Nov 2022 1 and 2 1 and 2
23
Diamonds sold
(carats) 444,029 696,194 -36% 445,113 1,140,223 961,411
Sales (US$
million) 40.5 79.3 -49% 59.9 119.8 161.3
Average price
(US$/ct) 91 114 -20% 135 105 168
Revenue from
Exceptional
Stones(2)
(US$ million) 0.0 0.0 n.a. 0.0 0.0 0.0
--------------- -------- --------- -------- --------- --------- --------
Note 1: Excludes all Koffiefontein sales results since it has
been classified as a discontinued operation in the Group's FY 2023
accounts.
Note 2: Exceptional Stones are defined as rough diamonds for
US$15 million or more each.
Sales
A total of 406.2kcts of goods from Cullinan Mine and Finsch were
sold, yielding US$32.9 million, and 37.9kcts from Williamson were
sold, yielding US$7.7 million. Parcels containing 527 carats,
valued by Petra at US$1.6 million and largely earmarked for South
African customers, are planned to be sold in the coming weeks and
will be included in the third tender cycle.
The results of Tender 2 bring FY 2024 YTD revenue from rough
diamond sales to US$119.8 million, compared to US$161.3 million in
the first two tenders of FY 2023, excluding Koffiefontein.
Year-on-year volume variances were affected by the deferral of
certain FY 2023 sales to Tender 1 of FY 2024 which was partially
offset by the decision to bring forward the second tender due to
the Indian import moratorium that commenced on 15 October 2023 and
is expected to last for 2 months.
Mine by mine average prices for the respective periods are set
out in the table below:
US$/carat Tender 2 Tender 1 YTD FY 2024 YTD FY 2023 FY 2023
FY 2024 FY 2024 Tenders 1-2 Tenders 1-2
Sep/Oct 2023 Aug 2023
Cullinan
Mine 78 113 101 165 139
Finsch 83 116 103 126 110
Williamson 203 n/a 203 286 280
------------ ------------- --------- ------------ ------------ -------
Like-for-like prices
Like-for-like rough diamond prices for goods sold declined by
16.9% on Tender 1 FY 2024, driven by double-digit decreases in
prices across all size categories. Year to date like-for-like
prices were down 14.2% compared to the equivalent two tenders of FY
2023.
Product mix
The balance of price movements is attributable to product mix,
which is partly affected by the exclusion of 527 carats of
higher-value goods carried forward to the third tender cycle, and
partly due to lower overall quality contributions from both
Cullinan Mine and Finsch, although both remained within the
expected range of product variability from tender to tender. This
was the first sale of goods from Williamson following the restart
of operations in July 2023.
Group pricing assumptions FY 2024
Given the current market dynamics, which we expect to be
temporary in nature, we have revised our FY 2024 pricing
assumptions downward as reflected in the table below. Future
diamond prices are influenced by a range of factors outside of
Petra's control and so these assumptions are internal estimates
only and no reliance should be placed on them. The Company's
pricing assumptions will be considered on an ongoing basis and may
be updated as appropriate.
Previous Current
US$ per carat Sep 2023 Oct 2023
Cullinan Mine 125 - 140 110 - 130
Finsch 105 - 120 100 - 115
Williamson 240 - 270 225 - 250
----------------- ---------- ----------
For further information, please contact:
Investor Relations, London Telephone: +44 20 7494 8203
Patrick Pittaway investorrelations@petradiamonds.com
Julia Stone
Kelsey Traynor
Financial PR (Camarco)
Gordon Poole Telephone: +44 20 3757 4980
Owen Roberts petradiamonds@camarco.co.uk
Elfie Kent
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 two
underground mines in South Africa (Finsch and Cullinan Mine) 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
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END
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