Petra Diamonds realised $58.7 million from 462,800 carats sold at its initial third tender of the fiscal year (FY) 2024, a 20% increase in like-for-like prices compared to the second tender of FY 2024, which closed in October 2023.
The growth was driven by over 20% increases in the prices achieved for goods smaller than 2cts, while 2 to 10.8 carat parcels saw increases in the mid-teens.
However, year-to-date like-for-like prices are down 13.2% compared to the equivalent three tenders for FY 2023.
Petra said final sales for the third cycle are scheduled to close this week, with around 31, 000 carats from Williamson mine on tender at the company's sales facilities in Belgium, and some 25, 000 carats from the South African operations planned to be sold to local clients to meet its South African diamond beneficiation obligations.
"The 20% increase in like-for-like prices for our third tender of FY 2024 supports the view that diamond prices have likely bottomed,” said company chief executive Richard Duffy.
“We believe actions taken by major producers to curb supply and the two-month Indian moratorium that comes to an end on 15 December 2023, together with strengthened retail sales in the US, have improved market conditions as inventory levels across the pipeline rebalance.”
He said ongoing discipline by the key players is imperative to provide some price stability in the new year.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
