Petra Diamonds
Limited
Sales results for
Tender 5 of FY 2022
Petra Diamonds Limited ("Petra" or the "Company") announces the
results of Tender 5 of FY 2022, at which 635,806 carats were sold
for a total of US$86.1 million.
Tender 5 FY 2022 Results |
FY 2022
Tender 5 |
FY 2022
Tender 4 |
FY 2022
Tender 3 |
FY 2022
Year to Date |
Diamonds sold (carats) |
635,806 |
735,222 |
885,136 |
2,966,875 |
Sales (US$ million) |
86.1 |
140.6 |
128.4 |
491.4 |
Like-for-like rough diamond prices decreased by 23.7% on Tender
4 (March 2022), but were up 3.2% on
Tender 3 (December 2021), with the
balance of price movement attributable to product mix. Strong
demand was again evident across all size and quality
categories. The reduction in prices compared to the highs
seen in March was in line with other market commentary and as
anticipated in our Q3 FY 2022 Trading Updated earlier this
month.
The fifth tender cycle included one Exceptional Stone from the
Cullinan mine, a 13.74ct blue stone. This was sold for
US$5.7 million into a partnership
with Stargems (Pty) Ltd (“Stargems”), with Petra retaining a 50%
interest in the profits of the resultant polished stone(s), net of
costs. Petra classifies an ‘Exceptional Stone as a rough
diamond that sells for US$5 million
or more.
Mine by mine prices for Tender 4, H1 FY 2022 and Year-to-Date FY
2022 are set out in the table below:
Mine |
Tender 5
FY 2022
(US$/ct) |
Tender 4
FY 2022
(US$/ct) |
H1
FY 2022
6 months to
31-Dec-21
(US$/ct) |
YTD
FY 2022
(US$/ct) |
Cullinan1 |
111 |
180 |
192 |
172 |
Finsch |
122 |
151 |
97 |
114 |
Koffiefontein |
431 |
856 |
538 |
578 |
Williamson1 |
341 |
369 |
760 |
437 |
Note 1: Prices for both Cullinan and Williamson mines include
proceeds from the sale of Exceptional Stones. At
Cullinan the product mix was negatively impacted by fewer Type IIa
(white) stones in this sales cycle over the preceding FY2022
tenders. We expect this to improve back towards the average in
future tenders.
Petra intends to hold one further tender during FY 2022, in
June.
Richard Duffy, Chief Executive of
Petra, commented:
“As anticipated, these prices were
below the significant increase we saw in our March sales,
reflecting the seasonally quieter period and the ongoing
uncertainty around the impact of the conflict in Ukraine. Prices nevertheless remain above our
December tender levels, providing for some consolidation in a
diamond market that continues to be supportive.
“We are pleased to have entered into
a third partnership arrangement with Stargems for this financial
year on the 13.74ct blue diamond from Cullinan. We previously
announced partnership arrangements, also with Stargems, on the
342.92 carat Type IIa white diamond (that sold for US$10 million and an 18.30 carat Type IIb blue
diamond (that sold for US$3.5
million), both from Cullinan. Further details on the sale of
the resultant polished diamonds will be provided as this process
evolves.”
~ Ends ~
For further information, please
contact:
Petra Diamonds,
London
Telephone: +44 20 7494 8203
Jill
Sherratt
investorrelations@petradiamonds.com
Julia Stone
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 producing mines in South
Africa (Finsch, Cullinan and Koffiefontein) 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 of ca. 230 million carats,
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
US$336.7 million notes due in 2026
are listed (subject to temporary suspension) on the Irish Stock
Exchange and admitted to trading on the Global Exchange Market. For
more information, visit www.petradiamonds.com.