REG-Petra Diamonds Ltd: Final sales results for Tender 3 FY 2025

Petra DiamondsAnnouncement

20/12/2024 07:15

20 December 2024    
 LSE: PDL            

 

Petra Diamonds Limited

("Petra” or "the Company")

 

Final sales results for Tender 3 FY 2025

 

Richard Duffy, Chief Executive Officer of Petra, commented:

 

“Our third tender cycle yielded US$71 million from the sale of 700,803
carats bringing year-to-date sales revenues to US$146 million from the sale of
1,300,964 carats. Like-for-like 1  (#_ftn1) prices reduced by 7% from the
previous tender cycle held in October reflecting a continued weak market
across most size ranges, although we were encouraged by the 3% increase in the
5-10.8 carat category. As a result of the prevailing market weakness, we have
revised our price assumptions for FY 2025 as set out below. Despite the market
backdrop, we are encouraged by the majors’ ongoing discipline around
restricting the volume of rough diamonds to support the market and initiatives
by upstream, midstream and retail sectors to collaborate in the category
marketing of diamonds.

 

We remain committed to our target of net cash generation in FY 2025 and have
commenced additional cash generation and savings initiatives. This has
regrettably required us to initiate a section 189 (retrenchment) process
affecting our Group and SA Operations support functions. Vivek Gadodia has
been appointed Chief Restructuring Officer to lead the execution of this work.

 

Refinancing discussions have been deferred to CY 2025 to enable these cash
generation initiatives to take effect and to benefit from greater certainty in
respect of market conditions. We remain confident of a successful refinancing
of the 2026 2L Notes and a further update will be provided at the time of our
interim results in February 2025.”

 

Rough diamond sales results for the respective periods are shown below.

                         Tender 3 FY 2025 Dec 24  Tenders 1-2 FY 2025 Oct 24  Variance  YTD FY 2025 Tenders 1-3  YTD FY 2024 1 Tenders 1-3  FY 2024    
 Diamonds sold (carats)  700,803                  600,161                     +17%      1,300,964                1,659,620                  3,158,780  
 Sales (US$ million)     71                       76                          -7%       146                      188                        366        
 Average price (US$/ct)  101                      126                         -20%      112                      113                        116        

1Revenue and volume variances were impacted by the deferral of the final
tender of FY 2023 into FY 2024, leading to higher sales in the comparative YTD
FY 2024 period.


Mine by mine average prices for the respective periods are set out in the
table below:

 US$/carat      Tender 3 FY 2025 Dec 24  Tenders 1-2 FY 2025 Oct 24  YTD FY 2025 Tenders 1-3  YTD FY 2024 Tenders 1-3  FY 2024  
 Cullinan Mine  100 2                    146                         121                      112                      116      
 Finsch         72                       84                          78                       99                       98       
 Williamson     174                      164                         170                      202                      191      

2Excluding the 88 kcts of brown goods withdrawn from Tender 1-2 and sold in
Tender 3, at a revenue of US$3 million, average prices of US$122/ct would have
been achieved.

Our revised pricing assumptions for FY 2025 are:

 

 US$ per carat  FY 2025 Original  FY 2025 Revised  
 Cullinan Mine  125 – 135         120 – 130        
 Finsch         98 – 105          80 – 90          
 Williamson     200 – 225         170 – 200        

 

Future diamond prices are influenced by a range of factors outside of
Petra’s control and so these assumptions are internal estimates only and no
reliance should be placed on them. The Company’s pricing assumptions will be
considered on an ongoing basis and may be updated as appropriate.

 

Like-for-like prices

Like-for-like rough diamond prices for goods sold declined by 7% on Tenders
1-2 FY 2025 across most product categories, with a 3% increase in 5–10.8
carat stones. Year-to-date like-for-like prices are down 10% compared to the
equivalent three tenders of FY 2024, mainly from smaller size categories.

 

 

For further information, please contact:

 

Investor Relations, London

Patrick Pittaway      Telephone: +44 (0)784 192 0021

Kelsey Traynor      investorrelations@petradiamonds.com

 

 

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 two underground mines in South Africa
(Cullinan and Finsch Mines) 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  (#_ftnref1) 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

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