"Cautious Optimism" Despite Petra Price Slip
May 21, 24(IDEX Online) - Petra saw prices slip slightly at its latest tender but said it was "cautiously optimistic" of a recovery later this year.
The UK-based miner reported revenue of $44m at Tender 6, down 11 per cent on $49m at Tender 5 in April.
Average price per carat fell by 13 per cent from $136 to $118.
"Like-for-like rough diamond prices decreased by 2.6 per cent on Tender 5 FY 2024 which is largely ascribed to seasonal weakness being evident across virtually all size categories," Petra said in its sales report.
"Average like-for-like prices for the six tenders thus far in FY 2024 were down 8.6% year-to-date compared to the equivalent tenders of FY 2023."
Demand was "slightly muted" due to Indian holidays and the continued slow recovery in the Chinese market, the company said,butr there was room for some optimism.
"We continue to see evidence of stabilisation in the market and are cautiously optimistic that demand and pricing will improve towards the end of this calendar year."
Total revenue from rough diamond sales for the year to date is $329m, compared to $316m from the first five tenders of FY 2023, excluding Koffiefontein, the mothballed loss-making mine in South Africa that is being sold to Dubai-based Stargems.
Pic courtesy Petra shows the Cullinan mine's processing plant.