REG-Petra Diamonds: Sales Results for Tender 2 FY2023

Petra DiamondsAnnouncement

24/11/2022 13:45

24 November 2022   LSE: PDL 

PETRA DIAMONDS LIMITED

Sales results for Tender 2 FY 2023

Petra achieves US$61.3 million in sales in its second tender for FY 2023

Richard Duffy, Chief Executive Officer of Petra Diamonds (Petra), said:

“This is a creditable result in the current somewhat muted market, with
like-for-like 1  prices 12.6% higher compared to Tender 2 of FY 2022 and 5.1%
lower than Tender 1 of FY 2023. Demand for fancy coloured and large white
stones continued to be evident despite this being a seasonally weaker period.
Subdued demand in China continued to impact pricing in the gem quality 0.75ct
up to 5ct size ranges, with some pricing pressure also evident in the 5ct –
10ct range. Pricing across smaller size ranges was largely flat on the
previous tender.

Although we continue to expect a supportive diamond market in the medium to
longer term as a result of the structural supply deficit, we see current
levels of demand continuing into the New Year, albeit with the potential
upside of festive season sales and any easing of lockdown restrictions in
China.”

Petra announces the results of Tender 2 of FY 2023, at which 447,276 carats
were sold for a total of US$61.3 million across Petra’s mining operations.

Rough diamond sales results for the respective periods are set out below:

                                                   Tender 2 FY23 Oct / Nov-22  Tender 1 FY23 Sep-22  Variance T1 FY23 vs T2 FY23  Tender 2 FY22 Oct-21  YTD FY 2023 after Tenders 1&2  YTD FY 2022 after Tenders 1&2  
 Diamonds sold (carats)                                      447,276                  520,011                    -14%                    132,525                   967,287                        710,712             
 Sales (US$ million)                                          61.3                     102.9                     -40%                     21.5                      164.1                          136.4              
 Average price (US$/ct)                                        137                      198                      -31%                      162                       170                            192               
 Revenue from Exceptional Stones 2  (US$ million)               –                        –                        –                         –                         –                             50.2              

Sales

Volumes for the second tender cycle are typically lower than the first tender
cycle given the respective cut-off dates for these cycles. As previously
announced, the final closure for Tender 2 FY 2023, originally planned towards
the second half of October, was extended as a result of unusual market
conditions with some build up in inventory pre-Diwali. This extension resulted
in an overall price increase of around 6.4% on the affected parcels. Our third
sales tender for FY 2023 is currently planned to close early December 2022
although we will continue to be flexible in our approach.

 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

The results of Tender 2 bring FY 2023 revenue from rough diamond sales to
US$164.1 million, with no Exceptional Stone sales YTD, compared to US$136.4
million in the first two tenders of FY 2022, which included a US$50.2 million
contribution from Exceptional Stones.

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

 US$/carat      Tender 2  FY23 Oct / Nov-22  Tender 1  FY23 Sep-22  Tender 2  FY22 Oct-21  YTD FY 2023 after Tenders 1&2  YTD FY 2022 after Tenders 1&2  FY 2022 12 months to 30 June 2022  
 Cullinan Mine              113                       212                  214 (1)                      165                          245 (1)                          169 (1)               
 Finsch                     118                       132                    109                        126                             99                               77                 
 Williamson                 272                       297                    n/a                        286                            n/a                            384 (1)               
 Koffiefontein              639                       383                    461                        477                            562                              581                 

Note 1: Prices for both Cullinan Mine and Williamson include proceeds from the
sale of a number of Exceptional Stones.

Like-for like prices

Whilst like-for-like rough diamond prices declined by 5.1% on Tender 1 FY
2023, they increased 12.6% compared to Tender 2 of FY 2022, with YTD prices up
19.0% on a like-for-like basis compared to the first two tenders of FY 2022.

Product mix

The balance of price movements are attributable to product mix, particularly
for the Cullinan Mine, where the previous tender cycle benefited from an
increased number of high value stones, which largely normalised in Tender 2
resulting in a lower overall price per carat.

For further information, please contact:

Petra Diamonds, London                 Telephone: +44 20 7494
8203                                              

Patrick
Pittaway                                 
investorrelations@petradiamonds.com

Julia Stone

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 producing 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
of 226.6 million carats, 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.



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