In its fifth tender for the 2023 financial year, London-listed Petra Diamonds has generated $42.1-million from the sale of 468 800 ct.
CEO Richard Duffy says the lower sales in the fifth cycle represent a softening in the market following stronger sales in the fourth tender cycle, which closed in March.
As a result, like-for-like prices for the goods sold declined compared with tender four and were marginally lower compared with tender three.
“We withheld parcels with a combined weight of 75 900 ct of gem- and near-gem-quality goods throughout all size ranges, in expectation of an improved pricing environment in May and June.
“Prices offered on these parcels reflected bidding at prices below our own estimates,” Duffy explains.
He attributes the softer demand to inventory levels in the midstream and extended shutdowns by certain manufacturers following the recent Indian holidays.
With the extended holidays set to end in the coming weeks, demand is expected to improve and the withdrawn parcels will be offered for sale at Petra’s Antwerp facilities during May and June. This approach reflects Petra’s strategy of maintaining flexibility at its tenders to optimise pricing.
“We continue to see a supportive diamond market in the medium to longer term as a result of the structural supply deficit, despite the volatility seen in this current sale,” Duffy states.
Meanwhile, the fifth sales cycle included one exceptional stone, weighing in at 354.04 ct that sold for $5.6-million, which was mined at the Cullinan mine.
The parcels that Petra withheld contain various higher-valued diamonds, resulting in heavily diluted average prices for both the Cullinan and Finsch mines. Petra realised an average price of $90/ct in the fifth sales cycle, compared with an average price of $143/ct in the fourth sales cycle.
No sales were recorded for the Koffiefontein or Williamson mines, owing to the suspension of operations at both mines.
Petra has three underground mines in South Africa – Finsch, Cullinan and Koffiefontein, as well as one openpit mine in Tanzania.