Petra Diamonds prices plummet 23.7%

Petra Diamonds Limited has announced its like-for-like rough diamond prices decreased by 23.7% in the fifth tender cycle (Tender 5) of 2022.

Petra said the reduction in prices is in line with the company’s guidance in its Q3 FY22 trading update last month, where Petra outlined it anticipated some pull back in diamond prices from the elevated March tender levels as a result of the economic impact of the war in Ukraine.

Overall, sales hit $86.1m (£68.65m) in Tender 5 as 635,806 carats were sold, down from $140.6m (£112.12m) in Tender 4 in March 2022. However, this is up 3.2% from Tender 3 in December 2021, with the balance of price movement attributable to product mix.

Petra Diamonds said “strong” demand was evident across all size and quality categories.

Tender 5 also included one Exceptional Stone from the Cullinan mine, a 13.74ct blue stone, which was sold for $5.7m (£4.54m) into a partnership with Stargems (Pty) Ltd, with Petra retaining a 50% interest in the profits of the resultant polished stone, net of costs.

Richard Duffy, chief executive of Petra, said: “As anticipated, these prices were below the significant increase we saw in our March sales, reflecting the seasonally quieter period and the ongoing uncertainty around the impact of the conflict in Ukraine.

“Prices nevertheless remain above our December tender levels, providing for some consolidation in a diamond market that continues to be supportive.”