Richard Duffy, Chief Executive Officer of Petra, commented, “Our seventh tender cycle yielded US$38 million, bringing revenue for FY 2024 to US$366 million, which is 13% higher than FY 2023. Like-for-like [1] prices in this tender cycle were down 3.8% compared to Tender 6 as a result of the continued softness in demand for coarser goods, specifically stones between 1 and 10 carats in size, exacerbated by seasonal weakness.
We expect a subdued market through to the end of this calendar year. Our recently published FY 2025 pricing assumptions remain unchanged. In addition to the rough diamond sales mentioned above, we benefitted from the sale of three partnership stones, with Petra’s profit uplift totalling US$1.3 million for FY 2024 compared to US$1.4 million realised in FY 2023.”
Sales total revenue from rough diamond sales for FY 2024 is US$366 million, compared to US$324 million in FY 2023, excluding Koffiefontein. Year-on-year volume variances were affected by the deferral of certain parcels from FY 2023 which were sold as part of Tender 1 of FY 2024.
Like-for-like rough diamond prices decreased by 3.8% on Tender 6 FY 2024 on the back of continued softness in demand for coarser goods, most notably in the 1 to 10ct size ranges. Average like-for-like prices for FY 2024 were down 12.4% compared to prices achieved in FY 2023.
The balance of price movements is attributable to product mix, with overall average prices per carat received being 6% lower than the previous tender. In line with the previous two tender cycles, Williamson’s average price remained low due to a reduced prevalence of higher-value single stones. This reduced prevalence is ascribed to the mining areas currently being accessed and is expected to be temporary in nature.
Future diamond prices are influenced by a range of factors outside of Petra’s control and so these assumptions are internal estimates only. Accordingly, no reliance should be placed on them. The Company assumes no responsibility to update these market pricing assumptions.
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