Petra Diamonds said it brought forward its Tender 2 sales ahead of a two-month moratorium on diamond imports into India, and that on a like-for-like basis prices were approximately 16% to 18% lower than those achieved in the first tender.
The London-listed gemstone miner said on Friday that it sold 344,554 carats for $30.2 million at an average price of $88 per carat, reflecting the prevailing market weakness. It added that it expects prices to continue to benefit from the structural supply deficit in the medium to long term.
The company said that the sale of the remaining 25% of the Tender 2 volume is expected to close on or around 11 October. The Indian import moratorium is due to start on 15 October.
“The steps taken by the major producers to curb supply to the market and the two-month Indian moratorium are expected to provide some much needed stability and support to the market and thus prices,” the company said.
Shares were flat at 67p by 0707 GMT.
