Mining News
Petra Diamonds sees 'stronger' demand from major jewelry brands in its fourth tender of FY23
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(Kitco News) - Petra Diamonds (LSE: PDL) today announced the results of its fourth tender 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 compares to 735,222 carats sold for a total of US$140.6 million in the company's fourth tender of FY 2022 and 305,366 carats sold for a total of US$42.3 million in third tender of FY 2023.
The company said that the lower volume sold in its fourth tender of 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.
Petra added that the results of its fourth tender 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.
CEO Richard Duffy commented, "Petra's fourth tender for FY 2023 saw a 12.5% increase in like-for-like 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 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).
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