Petra CE Richard Duffy
Photo by: Creamer Media
London-listed Petra Diamonds sold 735 222 ct for $140.6-million during Tender 4 of the 2022 financial year, the company said on March 7.
For the 2022 financial year so far, the company has sold more than 2.3-million carats for $405.3-million.
Petra said like-for-like rough diamond prices increased by 46.5% for the six months to December 2021 and by 37.6% compared with Tender 3, which closed on December 2021, with the balance of the price movement attributable to product mix.
“The tender of the group’s South African operations was hosted in South Africa for the first time since the Covid-19 pandemic took hold and was extremely well attended.
“Demand spanned the entire spectrum of rough assortments and sizes, with a notable increase in the price of larger stones – particularly the white D-colours, for which Cullinan [in Gauteng] is renowned, as well as fancy coloured diamonds,” Petra CE Richard Duffy said in a statement.
Strong demand, with resultant price increases, were evident across all size and quality categories, the company added.
“This tender cycle included one exceptional stone from the Cullinan mine, which was a 157.8 ct white stone sold for $5.5-million,” the company revealed.
Petra classifies exceptional diamonds as rough diamonds that sell for $5-million or more each.
Petra said it intended to hold two further tenders during the 2022 financial year – in April and June.
Duffy said the strong sales results supported the robust health across the diamond value chain that had been evident since mid-2021.
He noted that current pricing in the rough market was being driven by strong sales of polished and increased demand from the manufacturing centres, bolstered by record sales during the festive season that have continued into the new year.
“While we believe this market reflects the structural change in underlying supply and demand dynamics, which we expect to continue in the medium term, it is too soon to determine what impact the current conflict in Ukraine will have on the global economy and the diamond market specifically,” Duffy concluded.