Petra’s Tender Results Down 18%
Miner optimistic about impact of latest supply restrictions on prices
By Erez Jacob Rivlin
Petra’s Tender 2 for FY 2024 reflected 16% to 18% lower prices than those achieved at Tender 1. Petra (LSE: PDL) reported US$30.2 million revenue at an average price of US$88 per carat, with a total of 344,554 carats sold. This tender represented only 75% of total volume and the remaining 25% will be offered for sale in the coming week.
The company brought forward its second tender in response to the voluntary two-month ban on rough diamond imports to India, expected to commence on October 15th.
Petra’s management is positive about the latest emergency actions taken by major diamond market players. In a press release earlier today, the company said that “in the medium to longer term, we continue to expect prices to benefit from the structural supply deficit”. In addition to the Indian import ban, De Beers has allowed its clients to drastically reduce their scheduled purchases and Alrosa is halting all sales for the next two months.
Petra’s latest tender included ROM (run-of-mine) from its three underground mines in South Africa (Finsch, Cullinan and Koffiefontein) and Williamson, its open pit mine in Tanzania (probably goods remaining from production before the disastrous tailings dam burst).
