In a recent development, Petra Diamonds, a notable player in the diamond mining industry, experienced a decline in the prices of its rough diamonds during the initial tender of the fiscal year. Despite expectations of a surge in demand, the results fell short of anticipated levels.
During the trading session in August, the company managed to generate $79.3 million in revenue through the sale of 696,194 carats of diamonds. However, a noteworthy point of concern was the decline in like-for-like prices, specifically for diamonds falling under similar categories. These prices exhibited a 4.3% drop in comparison to those observed in May. This financial data was communicated by the company on Friday.
The observed deceleration was primarily attributed to the weakening prices in the range of rough diamonds measuring between 2 and 10.8 carats. Within this specific category, the prices recorded a significant 14% decrease on a like-for-like basis. In contrast, prices for diamonds sized under 2 carats demonstrated a moderate increase, ranging from 1% to 2%, according to a statement from Petra.
The company’s tender event managed to attract substantial participation; however, the level of demand was not as robust as expected, particularly as the summer holiday period came to a close. Petra’s CEO, Richard Duffy, clarified that while an expected upturn in demand was observable for larger, higher-quality diamonds measuring 10.8 carats or more, it was offset by sluggish demand for diamonds sized between 2 and 10 carats.
It is notable that the recent tender did not witness the sale of any exceptionally valuable stones, as highlighted by the company’s report. Nevertheless, a positive note was struck by the sale of a 20.9-carat yellow diamond from the Cullinan deposit, which fetched $1.7 million.
A comprehensive analysis of the financial figures reveals that the overall sales value exhibited a notable 88% increase compared to May’s figures of $42.1 million. Despite this, there was a decline of 23% in sales value when juxtaposed with the analogous tender conducted in September 2022. The sales volume demonstrated a substantial 49% growth in comparison to May’s numbers and a solid 34% increase year-on-year. Notably, the average price per carat witnessed an ascent, rising to $114 from the $90 reported in the preceding tender.
