TIDMPDL
RNS Number : 1060W
Petra Diamonds Limited
08 December 2023
08 December 2023 LSE: PDL
Petra Diamonds Limited
("Petra" or "the Company")
Initial sales results for Tender 3 FY 2024
Petra announces initial sales results for Tender 3 of FY 2024,
at which 462.8 kcts were sold for a total of US$58.7 million,
representing a c. 20% increase in like-for-like[1] prices compared
to Tender 2 FY 2024, which closed in October 2023. Final sales for
this third cycle are scheduled to close next week, with around 31
kcts from Williamson mine on tender at the Company's sales
facilities in Belgium, and some 25 kcts from the South African
operations planned to be sold to local clients to meet our South
African Diamond Beneficiation obligations.
Richard Duffy, Chief Executive Officer of Petra, said:
"The 20% increase in like-for-like(1) prices for our third
tender of FY 2024 supports the view that diamond prices have likely
bottomed. We believe actions taken by major producers to curb
supply and the two-month Indian moratorium that comes to an end on
15 December 2023, together with strengthened retail sales in the
US, have improved market conditions as inventory levels across the
pipeline rebalance. Ongoing discipline by the key players is
important to provide some price stability in the new year."
Rough diamond sales results for the respective periods are set
out below(1) :
Tender Tender Variance Tender YTD YTD
3 (initial) 2 3
FY 2024 FY 2024 FY 2023 FY 2024 FY 2023
Dec-23 Sep/Oct-23 Dec-22 Tenders Tenders
1-3 1-3
(initial)
Diamonds sold
(carats) 462,794 444,029 4% 303,300 1,603,017 1,264,722
Sales (US$ million) 58.7 40.5 45% 41.5 178.5 202.8
Average price
(US$/ct) 127 91 39% 137 111 160
Revenue from
Exceptional
Stones(2) (US$
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 411.7kcts of goods from Cullinan Mine and Finsch were
sold, yielding US$48.3 million, and 51.0kcts from Williamson
yielding US$10.4 million.
The current cycle also includes 31.3kcts from Williamson to be
tendered at our Belgium facility and around 25kcts from the South
African operations planned to be sold to South African customers
next week. These sales will be included in the final results of
this third tender cycle and in the Company's H1 FY 2024 financial
results.
The provisional results of Tender 3 bring FY 2024 YTD revenue
from rough diamond sales to US$178.5 million, compared to US$202.8
million in the first three tenders of FY 2023, excluding
Koffiefontein. Year-on-year volume variances were affected by the
deferral of certain FY 2023 sale parcels, which were sold as part
of Tender 1 of FY 2024.
Mine by mine average prices for the respective periods are set
out in the table below:
US$/carat Tender 3 Tender 2 YTD FY 2024 YTD FY 2023 FY 2023
FY 2024 FY 2024 Tenders 1-3 Tenders 1-3
(initial) Sep/Oct-23 (initial)
Dec-23
Cullinan
Mine 133 78 110 154 139
Finsch 94 83 101 121 110
Williamson 203 203 203 280 280
------------ ----------- ----------- ------------- ------------- --------
Like-for-like prices
Like-for-like rough diamond prices for goods sold improved by c.
20.0% on Tender 2 FY 2024, driven by over 20% increases in the
prices achieved for goods smaller than 2cts, while 2 to 10.8ct
parcels saw increases in the mid-teens. Year to date like-for-like
prices are down 13.2% compared to the equivalent three tenders of
FY 2023.
Product mix
The balance of price movements is attributable to product mix,
with an improved contribution from higher-value single stones from
Cullinan Mine, including a 12.6ct blue stone that sold for US$6.2
million, while Finsch and Williamson saw marginally reduced overall
qualities in their product offering, although both remained within
the expected range of product variability.
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 three
underground mines in South Africa (Finsch, Cullinan Mine and
Koffiefontein) and one open pit mine in Tanzania (Williamson). The
Koffiefontein mine is currently on care and maintenance in
preparation of closure.
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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