Petra Diamonds' Cullinan mine
A slowdown in the market for rough diamonds as a result of elevated inventory in the midstream has prompted Petra Diamonds to postpone the majority of its Tender 6 rough diamond sales.
Petra had previously expected to offer for sale about 230 000 ct of diamonds recovered at its Cullinan mine and about 150 000 ct of diamonds recovered at its Finsch mine as part of its sixth sales tender for the 2023 financial year, which ends on June 30.
Instead, these diamonds, together with 75 900 ct of predominantly higher-value diamonds withheld from Tender 5, as well as run-of-mine production from both the Cullinan and Finsch mines, will be offered for sale in the company's first tender of the 2024 financial year. That tender is likely to be held in August.
"The diamonds originally earmarked for sale in June will now be tendered in August, which historically coincides with stronger demand due to the end of northern hemisphere summer holidays and the commencement of manufacturing orders being filled ahead of the seasonally strong end of year festive period.
"Our ability to be flexible in the timing of our tenders is attributable to our strengthened balance sheet and the resilience of our business. This will defer sales revenues for only a relatively short period and we believe it is in the best interests of the business and shareholders," says CEO Richard Duffy.