London-based Petra Diamonds announced the postponement of its first tender for the 2025 financial year, originally scheduled for August and September in 2024 to limit rough supply in midstream.
The company said the rough diamond parcels from its South African operations, initially planned for the tender, would now be offered as part of the second tender, expected to close in mid-October 2024.
Petra Diamonds owns two South African diamond deposits – Cullinan and Finsch. The tender of diamonds from Petra’s Williamson mine in Tanzania will proceed as planned, the company said. It noted that the decision to defer the tender was a proactive measure aimed at supporting efforts by major diamond producers to limit supply during a period of weaker demand.
The company said recent steps taken to improve its financial position have provided it with the ability to adjust the timing of its tenders based on market conditions. And they believe withholding the rough diamond parcels for a short time will create near-term benefits for prices in the coming holiday season.
Petra Diamonds CEO Richard Duffy said: “Our expectation is that supply discipline, together with the expected seasonally stronger demand as we head towards the festive season, will provide some pricing support later in the calendar year.”
“Our recent steps to create a stronger balance sheet have provided us with flexibility around the timing of our tenders to respond to prevailing market conditions, and we have adequate liquidity, including available and undrawn balances on our existing revolving credit facility, to fund our working capital requirements,” Duffy added. (Photo courtesy: Petra Diamonds)
14-08-2024
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