REG - Petra Diamonds Ltd - Final sales results for Tender 3 FY 2024

Petra DiamondsAnnouncement

14/12/2023 07:15

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RNS Number : 7203W  Petra Diamonds Limited  14 December 2023

 14 December 2023  LSE: PDL

 

Petra Diamonds Limited

("Petra" or "the Company")

 

Final sales results for Tender 3 FY 2024 and Notice of Investor Presentation

 

Further to the announcement on 8 December 2023 of Petra's initial sales
results for Tender 3, the Company today announces the final sales results for
its third tender cycle following further sales of 56.6 kcts for US$9.3 million
which brings total sales for this cycle to US$67.9 million from 519.4 kcts
sold. The final sales results delivered a 19.3% increase in like-for-like 1 
prices compared to Tender 2 FY 2024 which closed in October 2023, reaffirming
Petra's belief that diamond prices have likely bottomed.

 

Petra's Senior Management will host an investor presentation on 18 December
2023 to discuss recent company updates and the diamond market. Details can be
found at the bottom of the release.

 

Rough diamond sales results for the respective periods are set out below(1):

 

                                                   Tender 3             Tender 2     Variance  Tender 3  YTD           YTD

                                                   FY 2024              FY 2024                FY 2023   FY 2024       FY 2023

                                                   Dec-23               Sep/Oct-23             Dec-22    Tenders 1-3   Tenders 1-3

 Diamonds sold (carats)                            519,397              444,029      17%       303,300   1,659,620     1,264,722

                                                   (initial: 462,794)
 Sales (US$ million)                               67.9                 40.5         68%       41.5      187.8         202.8

                                                   (initial: 58.7)
 Average price (US$/ct)                            131                  91           44%       137       113           160

                                                   (initial: 127)
 Revenue from Exceptional Stones(2) (US$ million)  0.0                  0.0          n.a.      0.0       0.0           0.0

Note 1: Excludes all Koffiefontein sales results since it has been classified
as a discontinued operation in the Group's FY 2023 accounts.

Note 2: Exceptional Stones are defined as rough diamonds for US$15 million or
more each.

 

 

Sales

A further 25.2 kcts of goods from Cullinan Mine and Finsch were sold, yielding
US$3.1 million, while a shipment from Williamson containing 31.4 kcts was sold
for US$6.2 million.

 

Total revenue YTD FY 2024 from rough diamond sales is US$187.8 million,
compared to US$202.8 million in the first three tenders of FY 2023, excluding
Koffiefontein. Year-on-year volume variances were affected by the deferral of
certain FY 2023 sale parcels, which were sold as part of Tender 1 of FY 2024.

 

Mine by mine average prices for the respective periods are set out in the
table below:

 

 US$/carat      Tender 3         Tender 2     YTD FY 2024      YTD FY 2023   FY 2023

                FY 2024          FY 2024      Tenders 1-3      Tenders 1-3

                                 Sep/Oct-23

                Dec-23
 Cullinan Mine  139              78           112              154           139

                (initial: 133)                (initial: 110)
 Finsch         91               83           99               121           110

                (initial: 94)                 (initial: 101)
 Williamson     201              203          202              280           280

                (initial: 203)                (initial: 203)

 

Like-for-like prices

Like-for-like rough diamond prices for goods sold improved by 19.3% on Tender
2 FY 2024, driven by over 20% increases in prices achieved for goods smaller
than 2 cts, while 2 to 10.8 ct parcels saw increases in the mid-teens. Year to
date like-for-like prices are down 13.3% compared to the equivalent three
tenders of FY 2023.

 

Product mix

The balance of price movements is attributable to product mix, with an
improved contribution from higher-value single stones from Cullinan Mine,
including a 12.6ct blue stone that sold for US$6.2 million and was included in
the initial sales results, while Finsch and Williamson saw marginally reduced
overall qualities in their product offering, although both remained within the
expected range of product variability.

 

 

DETAILS OF INVESTOR PRESENTATION

 

Given a number of recent updates have been made on the Company and the diamond
market, Petra would like to invite investors to join a live presentation with
Q&A to be hosted by the Company's Senior Management.

 

The update presentation will be held via Investor Meet Company on 18th Dec
2023 at 2pm GMT.

 

The call is open to all existing and potential shareholders. Questions can be
submitted pre-event via your Investor Meet Company dashboard up until 9am the
day before the meeting or at any time during the live presentation.

 

Investors can sign up to Investor Meet Company for free and add to meet Petra
Diamonds via:

https://www.investormeetcompany.com/petra-diamonds-limited/register-investor
(https://www.investormeetcompany.com/petra-diamonds-limited/register-investor)

 

Investors who already follow Petra Diamonds on the Investor Meet Company
platform will automatically be invited.

 

 

For further information, please contact:

 

Investor Relations, London                  Telephone: +44 20
7494
8203

Patrick
Pittaway
   investorrelations@petradiamonds.com
(mailto:investorrelations@petradiamonds.com)

Julia Stone

Kelsey Traynor

 

Financial PR (Camarco)

Gordon
Poole
Telephone: +44 20 3757 4980

Owen
Roberts
petradiamonds@camarco.co.uk (mailto:petradiamonds@camarco.co.uk)

Elfie Kent

 

 

About Petra Diamonds Limited

Petra Diamonds is a leading independent diamond mining group and a supplier of
gem quality rough diamonds to the international market. The Company's
portfolio incorporates interests in three underground mines in South Africa
(Finsch, Cullinan Mine and Koffiefontein) and one open pit mine in Tanzania
(Williamson). The Koffiefontein mine is currently on care and maintenance in
preparation of closure.

 

Petra's strategy is to focus on value rather than volume production by
optimising recoveries from its high-quality asset base in order to maximise
their efficiency and profitability. The Group has a significant resource base
which supports the potential for long-life operations.

 

Petra strives to conduct all operations according to the highest ethical
standards and only operates in countries which are members of the Kimberley
Process. The Company aims to generate tangible value for each of its
stakeholders, thereby contributing to the socio-economic development of its
host countries and supporting long-term sustainable operations to the benefit
of its employees, partners and communities.

 

Petra is quoted with a premium listing on the Main Market of the London Stock
Exchange under the ticker 'PDL'. The Company's loan notes due in 2026 are
listed on the Irish Stock Exchange and admitted to trading on the Global
Exchange Market. For more information, visit www.petradiamonds.com.

 1  Like-for-like refers to the change in realised prices between tenders and
excludes revenue from all single stones and Exceptional Stones, while
normalising for the product mix impact

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