REG-Petra Diamonds Ltd: Sales results for Tender 6 FY 2024

Petra DiamondsAnnouncement

17/05/2024 07:15

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 17 May 2024  LSE: PDL  

 

 

Petra Diamonds Limited

(Petra or the Company)

 

Sales results for Tender 6 FY 2024

 

 

Richard Duffy, Chief Executive Officer of Petra, commented:

 

"Our sixth tender cycle yielded US$44 million from the sale of 371kcts.
Like-for-like 1  (#_ftn1) prices were marginally down through this seasonally
quiet period, being 2.6% lower than Tender 5, with demand slightly muted due
to Indian holidays and the continued slow recovery in the Chinese market. We
continue to see evidence of stabilisation in the market and are cautiously
optimistic that demand and pricing will improve towards the end of  this
calendar year. We plan to conclude a seventh sales cycle closing before the
end of June 2024."

 

Rough diamond sales results for the respective periods are set out below:

                                                  Tender 6 FY 2024 May-24  Tender 5 FY 2024 Apr-24  Variance  Tender 5 FY 2023 2 May-23  YTD FY 2024 Tenders 1-6  YTD FY 2023 Tenders 1-5 2  
 Diamonds sold (carats)                           371,104                  362,132                  +2%       468,817                    2,821,716                2,237,010                  
 Sales (US$ million)                              44                       49                       -11%      42                         329                      316                        
 Average price (US$/ct)                           118                      136                      -13%      90                         116                      141                        
 Revenue from Exceptional Stones 1 (US$ million)  0                        0                        0%        0                          0                        0                          

Note 1: Exceptional Stones are defined as rough diamonds that sell for US$15
million or more each.

Note 2: Given revised tender timings, the comparative sales cycle in FY 2023
was Tender 5 which closed in May 2023.

 

Sales

Total revenue YTD FY 2024 from rough diamond sales is US$329 million, compared
to US$316 million in the first five tenders of FY 2023, excluding
Koffiefontein. Year-on-year volume variances in respect of YTD FY 2023 were
affected by the deferral of certain 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 6 FY 2024 May-24  Tender 5 FY 2024 Apr-24  YTD FY 2024 Tenders 1-6  YTD FY 2023 Tenders 1-5  FY 2023  
 Cullinan Mine  124                      157                      117                      143                      139      
 Finsch         93                       95                       98                       110                      110      
 Williamson     183                      177                      198                      280                      280      

 

Like-for-like prices

Like-for-like rough diamond prices decreased by 2.6% on Tender 5 FY 2024 which
is largely ascribed to seasonal weakness being evident across virtually all
size categories. Average like-for-like prices for the six tenders thus far in
FY 2024 were down 8.6% year-to-date compared to the equivalent tenders of FY
2023.

 

Product Mix

The balance of price movements is attributable to product mix, with average
prices per carat received being 13% lower than the previous tender, largely as
a result of the 14.76ct exceptional colour and clarity blue diamond which sold
for US$8.2 million in Tender 5 FY 2024. Although Williamson's average price
was up around 3% compared to the previous tender, average prices for this
cycle were impacted by a reduced prevalence of higher-valued single stones.
This reduced prevalence is ascribed to the mining areas currently being
accessed and is expected to be temporary in nature.

 

Pricing Assumptions

Pricing assumptions for the remainder of the year remain unchanged.

 US$ per carat  FY 2024    
 Cullinan Mine  105 - 125  
 Finsch         95 - 110   
 Williamson     200 - 225  

 

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.

 

FURTHER INFORMATION

 

Please contact

 

Investor Relations, London

Patrick Pittaway      Telephone: +44 20 7494 8203

Julia Stone      investorrelations@petradiamonds.com

Kelsey Traynor

 

 

 

ABOUT PETRA DIAMONDS

 

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
(Cullinan Mine, Finsch and Koffiefontein) and one open pit mine in Tanzania
(Williamson). The Koffiefontein mine is currently on care and maintenance in
preparation for a possible sale following the execution of a definitive sales
agreement as announced on 8 April 2024.

 

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  (#_ftnref1) 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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