TIDMPDL
RNS Number : 0175A
Petra Diamonds Limited
19 May 2023
FOR IMMEDIATE RELEASE
19 May 2023 LSE: PDL
Sales results for Tender 5 FY 2023
Richard Duffy, Chief Executive Officer of Petra Diamonds
(Petra), said:
"Petra's fifth tender for FY 2023 yielded US$42.1m and, in line
with others in the market, saw a softening in demand following
stronger sales in our fourth tender cycle which closed in March
2023. As a result, like-for-like [1] prices for the goods sold
declined compared to Tender 4 and were marginally lower compared to
Tender 3. We withheld parcels with a combined weight of 75.9 kcts
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.
A total of 468.8 kcts of goods from both the Cullinan Mine and
Finsch were sold, yielding US$42.1 million. The softer demand is
attributed 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weeks, demand is expected to improve and the withdrawn parcels will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 2023. 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."
Petra announces the results of Tender 5 of FY 2023, at which
468,817 carats were sold for a total of US$42.1 million from
Petra's South African operations. This cycle includes one
Exceptional Stone [2] , a 354.04ct near-gem quality stone that sold
for US$5.6 million from our Cullinan Mine. Parcels containing
75,880 cts were withdrawn, which are now planned to be sold in May
and June 2023. These parcels contain predominantly higher valued
diamonds, resulting in heavily diluted average prices for both the
Cullinan Mine and Finsch. No sales for either Koffiefontein or
Williamson were recorded in this cycle given the suspension of
operations at both mines.
Rough diamond sales results for the respective periods are set
out below:
Tender 5 FY23 Tender 4 FY23 Variance Tender 5 FY22 YTD FY YTD FY
May-23 Mar-23 T5 FY23 vs May-22 2023 2022
T4 FY23 Tenders Tenders
1-5 1-5
Diamonds sold (carats) 468,817 505,398 -7% 635,806 2,246,869 2,966,875
Sales (US$ million) 42.1 72.1 -42% 86.1 320.6 491.4
Average price (US$/ct)(1,2) 90 143 -37% 136 143 166
Revenue from Exceptional Stones (US$
million) 5.6 7.0 -20% 5.7 12.6 89.1
-------------------------------------- ------------- ------------- ----------- ------------- --------- ---------
Note 1: Parcels containing 75,880 cts were withdrawn that
contain predominantly higher valued goods. As a result, the average
price was heavily diluted for the actual goods sold thus far in
this cycle
Note 2: Based on bids received and reserve prices for the
withheld parcels, Petra estimates the overall realised price for
the cycle, including withdrawn parcels, to be between US$105 and
US$115 per carat.
Sales
The results of Tender 5 bring FY 2023 YTD revenue from rough
diamond sales to US$320.6 million, including US$12.6 million from
Exceptional Stone sales, compared to US$491.8 million in the first
five tenders of FY 2022, which included a US$89.1 million
contribution from Exceptional Stones. The lower volumes sold in the
first five tenders of FY 2023 relative to the equivalent tenders
last year is driven by lower production from the South African
operations, the shutdown of Koffiefontein during H1 FY 2023 and
reduced production from Williamson pending the restart planned for
Q1 FY 2024.
Mine by mine average prices for the respective periods are set
out in the table below:
US$/carat Tender Tender Tender 5 YTD FY YTD FY 2022 FY 2022
5 4 2023
FY23 FY23 FY22 Tenders Tenders 1-5 12 months to
1-5
May-23 Mar-23 May-22 30 June 2022
Cullinan
Mine(1,2) 99 154 111 143 172 169
Finsch(2) 81 121 122 110 114 118
Williamson(1) n/a n/a 341 280 437 384
Koffiefontein n/a 461 431 452 578 581
--------------- ------- ------- --------- -------- ------------ -------------
Note 1: Prices for both Cullinan Mine and Williamson include
proceeds from the sale of Exceptional Stones.
Note 2: Based on bids received and reserve prices for the
withheld parcels, Petra estimates the overall realised price for
the cycle, including withdrawn parcels, to be between US$110 and
US$115 per carat for Cullinan Mine, and between US$105 and US$110
per carat for Finsch.
Like-for-like prices
Like-for-like rough diamond prices for goods sold declined by
13.0% on Tender 4 FY 2023 driven by double-digit decreases in the
prices of size categories smaller than 2 carats, while 2 to 10.8
carat goods saw prices softening by 3 to 5 percent. Like-for-like
prices were marginally down by 1.4% against Tender 3, while prices
increased by some 8.9% compared to Tender 5 of FY 2022. YTD prices
are up by 3.1% compared to the equivalent five tenders of FY
2022.
Product mix
The balance of price movements are attributable to product mix,
with a lower contribution from Cullinan's single stones in this
cycle, partly offset by the sale of the US$5.6 million Exceptional
Stone, while Finsch's product mix remained in line with previous
cycles.
This announcement includes inside information as defined in
Article 7 of the UK Market Abuse Regulation No. 596/2014 and is
being released on behalf of Petra by the Company Secretary.
For further information, please contact:
Petra Diamonds, London Telephone: +44 20 7494 8203
Patrick Pittaway investorrelations@petradiamonds.com
Julia Stone
Camarco (Financial PR)
Gordon Poole Telephone: +44 20 3757 4980
Owen Roberts petradiamonds@camarco.co.uk
Elfie Kent
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 mines in South Africa (Finsch, Cullinan Mine 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 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 loan
notes due in 2026 are listed on the Irish Stock Exchange and
admitted to trading on the Global Exchange Market. For more
information, visit www.petradiamonds.com.
[1] Like-for-like refers to the change in realised prices
between tenders and excludes revenue from all single stones and
Exceptional Stones, while normalising for the product mix
impact
([2]) Petra classifies "Exceptional Stones" as rough diamonds
which sell for US$5 million or more each
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCNKCBPPBKKQPD
(END) Dow Jones Newswires
May 19, 2023 02:00 ET (06:00 GMT)
Petra Diamonds (LSE:PDL)
Historical Stock Chart
From Apr 2024 to May 2024
Petra Diamonds (LSE:PDL)
Historical Stock Chart
From May 2023 to May 2024