REG-Petra Diamonds: Sales results for Tender 3 FY 2023

Petra DiamondsAnnouncement

13/12/2022 07:15

FOR IMMEDIATE RELEASE

 13 December 2022   LSE: PDL 

Sales results for Tender 3 FY 2023

Petra achieves US$42.3 million in sales in its third tender for FY 2023

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

“Petra’s third tender for FY 2023 saw a 2.2% increase in like-for-like 1 
prices on Tender 2 FY 2023, reversing the downward trend observed in the
previous two tenders. Although it is still too early to speculate on whether
rough diamond prices have bottomed out, we are very satisfied with the overall
result. Prices in the 2ct to 10ct size ranges saw an upward movement in
contrast to the recent negative trends, partly ascribed to improving
expectations for the current festive season and potentially reflecting signals
from the Chinese authorities with respect to an easing of lockdown
restrictions. Prices in smaller size ranges saw improved pricing which more
than offset softer pricing in the 0.75ct to 2ct ranges.

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

Petra announces the results of Tender 3 of FY 2023, at which 305,366 carats
were sold for a total of US$42.3 million across Petra’s mining operations.

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

                                                   Tender 3 FY23 Dec-22  Tender 2 FY23 Oct / Nov-22  Variance T2 FY23 vs T3 FY23  Tender 3 FY22 Dec-21  YTD FY 2023 after Tenders 1-3  YTD FY 2022 after Tenders 1-3  
 Diamonds sold (carats)                                   305,366                  447,276                       -32%                    885,136                  1,272,653                      1,595,848            
 Sales (US$ million)                                       42.3                     61.3                         -31%                     128.3                     206.4                          264.7              
 Average price (US$/ct)                                     138                      137                         +1%                       145                       162                            166               
 Revenue from Exceptional Stones 2  (US$ million)            –                        –                           –                       27.7                        –                             77.9              

Sales

The results of Tender 3 bring FY 2023 YTD revenue from rough diamond sales to
US$206.4 million, with no Exceptional Stone sales, compared to US$264.7
million in the first three tenders of FY 2022, which included a US$77.9
million contribution from Exceptional Stones. The lower volume sold in Tender
3 relative to the equivalent tender in FY 2022 was largely driven by the
earlier cut-off date for the current cycle.

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

 US$/carat      Tender 3  FY23 Dec-22  Tender 2  FY23 Oct / Nov-22  Tender 3  FY22 Dec-21  YTD FY 2023 after Tenders 1-3  YTD FY 2022 after Tenders 1-3  FY 2022 12 months to 30 June 2022  
 Cullinan Mine           116                       113                     142 (1)                      154                          192 (1)                          169 (1)               
 Finsch                  107                       118                        96                        121                             97                              118                 
 Williamson              266                       272                     760 (1)                      280                          760 (1)                          384 (1)               
 Koffiefontein           371                       639                       520                        450                            538                              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 improved by 2.2% on Tender 2 FY
2023, they increased 7.4% compared to Tender 2 of FY 2022, with YTD prices up
12.7% compared to the comparable three tenders of FY 2022. Prices across all
size ranges were generally up against the previous tender with the exception
of the 0.75ct to 2ct stones which saw a marginal decline in prices.

Product mix

The balance of price movements are attributable to product mix, resulting in a
slight increase at Cullinan while both Finsch and Williamson saw downward
price movements. The Williamson parcel consisted of all diamonds produced in
the period leading up to the Tailings Storage Facility failure announced on 7
November 2022.

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
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



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