Diamond producer Petra Diamonds has announced the results of Tender 3 of its 2023 financial year, at which 305 366 ct were sold for $42.3-million.

The results of Tender 3 bring revenue for the current financial year to date from rough diamond sales to $206.4-million, with no exceptional diamond sales, compared with $264.7-million in sales recorded for the first three tenders of the previous financial year, which included a $77.9-million contribution from the sale of exceptional diamonds.

The lower volume sold in Tender 3 this year, relative to the equivalent tender last year, was largely driven by the earlier cut-off date for the current cycle, the company said.

“Petra’s third tender for the 2023 financial year saw a 2.2% increase in like-for-like prices on Tender 2, 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,” Petra CEO Richard Duffy said on December 13.

He said prices in the 2 ct to 10 ct 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.

He noted that prices in smaller size ranges saw improved pricing, which offset softer pricing in the 0.75 ct to 2 ct range.

“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,” Duffy said.

While like-for-like rough diamond prices improved by 2.2% on Tender 2, they increased by 7.4% when compared with Tender 2 of the 2022 financial year, with year-to-date prices up 12.7% compared with the comparable three tenders of last year.

Petra noted that the balance of price movements was attributable to product mix, resulting in a slight increase at Cullinan, in Gauteng, while both Finsch, in the Northern Cape, and Williamson, in Tanzania, saw downward price movements.

The Williamson parcel consisted of all diamonds produced in the period leading up to the tailings storage facility failure that was announced on November 7.