Petra’s Rough Prices Continue to Slip Amid Weak Demand

Petra Diamonds’ rough prices decreased at its latest tender, as smaller goods experienced seasonal weakness.

The fifth trading session, which took place in April, brought in $49 million from the sale of 362,132 carats, while like-for-like prices slipped 1% versus February, the miner reported Tuesday. Of the total, $8.2 million came from the sale of a 14.76-carat, blue diamond from the Cullinan mine in South Africa.

The sales value was up 3% from February’s $48 million and 17% from the equivalent tender in May 2023. Sales volume dropped 16% from February 2024 and 23% year on year, while the average price surged to $136 per carat, compared to $112 per carat at the previous tender, due to the inclusion of the blue diamond.

Like-for-like prices of rough diamonds over 2 carats remained solid, while smaller goods showed seasonal weakness, Petra explained. Average like-for-like prices for the first five tenders of the fiscal year were down 8.5% compared to the equivalent tenders the previous year.

Revenue for the third fiscal quarter fell 1.5% year on year to $66 million for the three months that ended March 31, but it went down 27% from the second fiscal quarter. The latter drop was the result of a decrease in production and the timing of realized revenue from the fifth tender. Sales volume rose 3% year on year to 476,730 carats.

Output for the January-to-March period advanced 1.9% to 665,577 carats. The miner believes it is on track to meet its guidance of 2.75 million to 2.85 million carats for the full fiscal year.

Petra’s debt increased to $232 million as of the end of March, from $212 million on December 31.

For the first nine months of the fiscal year, the company’s revenue fell 8% to $253 million, while sales volume jumped 21% to 2.1 million carats. Production grew 2% to 2.1 million carats.

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Main image: The Cullinan mine. (Petra Diamonds)