9th Jun 2025 11:49
(Alliance News) - Petra Diamonds Ltd on Monday reported lower year-to-date revenue from its diamond sales, despite a stronger showing in its most recent tender, as weaker prices and product mix continued to weigh on performance.
The South Africa and Tanzania-focused diamond miner said it sold 613,747 carats of diamonds for USD53 million across its fifth and sixth tenders of financial 2025, at an average price of USD86 per carat.
This marked a 34% increase in revenue compared to tender 4 in February, and a 29% rise in volumes.
However, on a year-to-date basis, Petra's revenue fell 27% to USD239 million from USD329 million in the first six tenders of financial 2024. Sales volumes also declined to 2.4 million carats from 2.8 million, while the average price slipped to USD100 per carat from USD116.
Petra's financial year runs for the twelve months ending June 30.
The company said like-for-like rough diamond prices – excluding single stones – rose 3% from tender 4, though they remain 16% lower year-on-year due to weakness in smaller size categories.
At its Cullinan mine, average prices dropped to USD72 per carat from USD77 in the previous tender, and USD98 year-to-date from USD117 a year earlier. Petra blamed ongoing "product mix weakness" at Cullinan for a 6% decline in prices and said it expects improvement as ramp-up continues at new mining areas.
The Finsch mine saw a recovery in prices to USD75 per carat in the latest tender, supported by better product mix as new ore zones are accessed. Williamson's final tender under Petra ownership yielded USD14 million from 84,479 carats sold at USD169 per carat.
Looking ahead, Petra said it will no longer report tender results individually, instead switching to quarterly sales updates alongside its operating performance reports.
"In light of ongoing market uncertainty and the product mix issue at Cullinan mine," Petra added, "the company will continue to keep its pricing assumptions for financial 2025 under review."
Shares in Petra Diamonds were down 3.5% at 19.50 pence in London on Monday morning.
By Eva Castanedo, Alliance News reporter
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