REG-Petra Diamonds Ltd: Sales results for Tender 7 FY 2024

Petra DiamondsAnnouncement

04/07/2024 07:15

 

 

 04 July 2024  LSE: PDL  

 

 

Petra Diamonds Limited

(Petra or the Company)

 

Sales results for Tender 7 FY 2024

 

Richard Duffy, Chief Executive Officer of Petra, commented:

 

“Our seventh tender cycle yielded US$38 million, bringing revenue for FY
2024 to US$366 million, which is 13% higher than FY 2023. Like-for-like 1 
(#_ftn1) prices in this tender cycle were down 3.8% compared to Tender 6 as a
result of the continued softness in demand for coarser goods, specifically
stones between 1 and 10 carats in size, exacerbated by seasonal weakness. We
expect a subdued market through to the end of this calendar year. Our recently
published FY 2025 pricing assumptions remain unchanged.

 

In addition to the rough diamond sales mentioned above, we benefitted from the
sale of three partnership stones, with Petra’s profit uplift totalling
US$1.3 million for FY 2024 compared to US$1.4 million realised in FY 2023.”

 

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

                         Tender 7 FY 2024 Jun-24  Tender 6 FY 2024 May-24  Variance      FY 2024    FY 2023    
 Diamonds sold (carats)  337,064                  371,104                  -9%           3,158,780  2,329,817  
 Sales (US$ million)     38                       44                       -14%          366        324        
 Average price (US$/ct)  111                      118                      -6%           116        139        
                                                                                                               
                                                                                                               

 

Sales

Total revenue from rough diamond sales for FY 2024 is US$366 million, compared
to US$324 million in FY 2023, excluding Koffiefontein. Year-on-year volume
variances were affected by the deferral of certain parcels from FY 2023 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 7 FY 2024 Jun-24  Tender 6 FY 2024 May-24  FY 2024  FY 2023  
 Cullinan Mine  111                      124                      116      139      
 Finsch         93                       93                       98       110      
 Williamson     158                      183                      191      280      
                                                                                    

Like-for-like prices

Like-for-like rough diamond prices decreased by 3.8% on Tender 6 FY 2024 on
the back of continued softness in demand for coarser goods, most notably in
the 1 to 10ct size ranges. Average like-for-like prices for FY 2024 were down
12.4% compared to prices achieved in FY 2023.

 

Product Mix

The balance of price movements is attributable to product mix, with overall
average prices per carat received being 6% lower than the previous tender. In
line with the previous two tender cycles, Williamson’s average price
remained low due to a reduced prevalence of higher-value 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 FY 2025 remain unchanged.

 US$ per carat  FY 2025      
 Cullinan Mine  125 – 135    
 Finsch         98 – 105     
 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.
Accordingly, no reliance should be placed on them. The Company assumes no
responsibility to update these market pricing assumptions .

 

FURTHER INFORMATION

 

Please contact

 

Investor Relations, London

Patrick Pittaway      Telephone: +44 20 7494 8203

Kelsey Traynor      investorrelations@petradiamonds.com

 

 

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,
being rough diamonds that sell for US$15 million or more each, while
normalising for the product mix impact

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