London-based mining company Petra reported robust sales figures for the current month, amounting to $79.3 million, following the cancellation of its previous tender due to weakened demand.
In a recent announcement, the UK-based miner revealed that it successfully traded a total of 696,000 carats during this period. This total encompassed 75,900 carats that remained unsold from its May tender and an additional 380,000 carats that were originally scheduled for the now-cancelled June tender.
Notably, the sales recorded in August, specifically under “Tender 1 FY 2024,” experienced a notable surge, nearly doubling the figures seen in May, which stood at $42.1 million.
Petra attributed this surge in sales to a discernible rise in demand for higher quality stones, particularly those exceeding 10.8 carats, resulting in favorable price realizations. However, this positive trend was counterbalanced by sluggish demand observed within the 2 to 10 carat size ranges, leading to a comparative decline of approximately 14% in prices, when compared to “Tender 5.
Despite these variations, smaller diamond categories showcased resilience, with corresponding prices showing a moderate uptick ranging from 1% to 2%.
The company indicated its observation of diminishing impacts from high interest rates and inflation, which had previously impacted the midstream sector. Petra anticipates that these negative influences have reached their zenith and are poised to wane.
With an optimistic outlook for the approaching period, which includes significant festivities such as Diwali, Thanksgiving, Christmas, and the Chinese New Year, Petra foresees an improved demand scenario for jewelry, thereby potentially bolstering prices over the remainder of the calendar year.
CEO Richard Duffy shared insights on the sales dynamics, stating, “While our tender experienced strong attendance, the demand was slightly subdued in comparison to our projections as we exited the summer holiday season.”
Duffy also revealed that the average prices from the Cullinan mine and Finsch mine both benefited from an enhanced product mix. However, in a like-for-like comparison, prices displayed a modest decline of 4.3% when juxtaposed against the company’s recent “Tender 5 of FY 2023,” which concluded in May 2023.
