REG-Petra Diamonds: Sales results for Tender 5 of FY 2022

Petra DiamondsAnnouncement

03/05/2022 08:15

3 May 2022   LSE: PDL 

Petra Diamonds Limited

Sales results for Tender 5 of FY 2022

Petra Diamonds Limited ("Petra" or the "Company") announces the results of
Tender 5 of FY 2022, at which 635,806 carats were sold for a total of US$86.1
million.

 Tender 5 FY 2022 Results  FY 2022  Tender 5  FY 2022  Tender 4  FY 2022  Tender 3  FY 2022  Year to Date  
 Diamonds sold (carats)         635,806            735,222            885,136             2,966,875        
 Sales (US$ million)              86.1              140.6              128.4                491.4          

Like-for-like rough diamond prices decreased by 23.7% on Tender 4 (March
2022), but were up 3.2% on Tender 3 (December 2021), with the balance of price
movement attributable to product mix. Strong demand was again evident across
all size and quality categories.  The reduction in prices compared to the
highs seen in March was in line with other market commentary and as
anticipated in our Q3 FY 2022 Trading Updated earlier this month.

The fifth tender cycle included one Exceptional Stone from the Cullinan mine,
a 13.74ct blue stone.  This was sold for US$5.7 million into a partnership
with Stargems (Pty) Ltd (“Stargems”), with Petra retaining a 50% interest
in the profits of the resultant polished stone(s), net of costs. Petra
classifies an ‘Exceptional Stone as a rough diamond that sells for US$5
million or more.

Mine by mine prices for Tender 4, H1 FY 2022 and Year-to-Date FY 2022 are set
out in the table below:

 Mine            Tender 5  FY 2022   (US$/ct)  Tender 4  FY 2022   (US$/ct)  H1 FY 2022 6 months to 31-Dec-21  (US$/ct)  YTD  FY 2022   (US$/ct)  
 Cullinan (1)                 111                           180                                  192                               172            
 Finsch                       122                           151                                  97                                114            
 Koffiefontein                431                           856                                  538                               578            
 Williamson (1)               341                           369                                  760                               437            

Note 1: Prices for both Cullinan and Williamson mines include proceeds from
the sale of Exceptional Stones.  At Cullinan the product mix was negatively
impacted by fewer Type IIa (white) stones in this sales cycle over the
preceding FY2022 tenders. We expect this to improve back towards the average
in future tenders.

Petra intends to hold one further tender during FY 2022, in June.

Richard Duffy, Chief Executive of Petra, commented:

“As anticipated, these prices were below the significant increase we saw in
our March sales, reflecting the seasonally quieter period and the ongoing
uncertainty around the impact of the conflict in Ukraine. Prices nevertheless
remain above our December tender levels, providing for some consolidation in a
diamond market that continues to be supportive.

“We are pleased to have entered into a third partnership arrangement with
Stargems for this financial year on the 13.74ct blue diamond from Cullinan. We
previously announced partnership arrangements, also with Stargems, on the
342.92 carat Type IIa white diamond (that sold for US$10 million and an 18.30
carat Type IIb blue diamond (that sold for US$3.5 million), both from
Cullinan. Further details on the sale of the resultant polished diamonds will
be provided as this process evolves.”

~ Ends ~

For further information, please contact:

Petra Diamonds, London                 Telephone: +44 20 7494
8203

Jill Sherratt                             
            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 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 ca. 230 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 US$336.7 million notes due in
2026 are listed (subject to temporary suspension) on the Irish Stock Exchange
and admitted to trading on the Global Exchange Market. For more information,
visit www.petradiamonds.com.



Copyright (c) 2022 PR Newswire Association,LLC. All Rights Reserved