Diamond producer Petra notes ‘very strong’ attendance at its first tender of FY24

Diamond producer Petra notes 'very strong' attendance at its first tender of FY24

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(Kitco News) – Diamond producer Petra Diamonds (LSE: PDL) announced on Friday that its first tender of FY24 yielded $79.3 million from 696.2kcts sold, compared to $42.1 million from 468.8kcts sold in its fifth tender of FY23.

The company said it saw “very strong” attendance at the tender although demand was “more muted” than it had expected in exiting the summer holiday period.

“Average prices for both Cullinan mine and Finsch benefited from an improved product mix, while like-for-like prices declined by 4.3% compared to our most recent tender, tender 5 of FY23, which closed in May 2023,” Petra added.

CEO Richard Duffy said in a statement that macro-economic uncertainties around prevailing high interest and inflation rates have resulted in a “more cautious” approach from the mid-stream towards holding inventory.

However, he noted there are “indications” that these rates have now peaked and will start to decline, “providing support to our view of improved demand in the medium-term as a result of the structural supply deficit.”

“As we enter a seasonally stronger period which includes Diwali, Thanksgiving, Christmas and the Chinese New Year, we remain optimistic that jewellery demand will improve and provide some support to prices over the balance of the calendar year,” he said.

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).

Source: https://www.kitco.com/news/2023-08-25/Diamond-producer-Petra-notes-very-strong-attendance-at-its-first-tender-of-FY24.html