Petra Diamonds has released the initial sales results for 75% of Tender 2 FY 2024. The company brought forward its Tender 2 sales in response to the two-month moratorium on diamond imports to India starting on October 15, 2023. In these initial results, 344,554 carats were sold for a total of US$30.2 million, at an average price of US$88 per carat. These prices are 16 to 18% lower than the prices achieved in Tender 1 FY2024, reflecting the prevailing market weakness. The remaining 25% of the volume of Tender 2 is scheduled to close on or around October 11, 2023.
The steps taken by major producers to curb supply and the Indian moratorium are expected to bring stability and support to the market and prices. Petra expects prices to benefit from the structural supply deficit in the medium to longer term. The company's assessment of the current market volatility and near-term uncertainty will be reflected in its FY 2023 Annual Report and Accounts, to be published on October 10, 2023.
Petra Diamonds is a leading independent diamond mining group and supplier of gem quality rough diamonds. The company's portfolio includes interests in three underground mines in South Africa and one open pit mine in Tanzania. Petra's strategy is to focus on value rather than volume production by optimizing recoveries from its high-quality asset base. The company aims to conduct all operations according to the highest ethical standards and only operates in countries that are members of the Kimberley Process. Petra strives to generate tangible value for its stakeholders and contribute to the socio-economic development of its host countries.