Richard Duffy, Chief Executive Officer of Petra Diamonds (Petra), said, “Petra’s first tender of FY 2024 yielded US$79.3 million from 696.2kcts sold. We saw very strong attendance at the Tender although demand was more muted than we had expected in exiting the summer holiday period.

Average prices for both Cullinan Mine and Finsch benefited from an improved product mix, while like-for-like prices declined by 4.3% compared to our most recent tender, Tender 5 of FY 2023, which closed in May 2023.

The expected seasonal improvement in demand was evident for higher quality +10.8ct stones with solid prices realised, including US$82,630 per carat for a 20.9 ct yellow diamond from Cullinan Mine that sold for US$1.7m.

This was offset by slower demand for 2-10 carat size ranges with like-for-like prices down by c. 14% compared to Tender 5. Demand in smaller categories remains resilient, with like-for-like prices increasing between 1-2%.

Macro-economic uncertainties around prevailing high interest and inflation rates have resulted in a more cautious approach from the mid-stream towards holding inventory. Indications are that these rates have now peaked and will start to decline, providing support to our view of improved demand in the medium-term as a result of the structural supply deficit.

Although demand for lab grown goods increased, this was coupled with further price depreciation that continues to substantially differentiate this market segment from our unique and rare natural diamonds that provide enduring benefit in celebrating life’s most significant moments.

As we enter a seasonally stronger period which includes Diwali, Thanksgiving, Christmas and the Chinese New Year, we remain optimistic that jewellery demand will improve and provide some support to prices over the balance of the calendar year.”