Petra Diamonds Ltd - diamond miner in Tanzania and South Africa - Warns results for financial year ending June 30 will be hurt by decision to postpone its planned sixth tender of rough diamonds from June until August, though financial 2024 will benefit. Petra Chief Executive Richard Duffy says the decision was made ‘in light of what we expect to be a temporary slowdown in the market for rough diamonds as a result of elevated inventory in the mid-stream’. Last month, Petra said sales in its fifth tender, between March and May, were $42.1 million, down 51% from $86.1 million in the fifth tender a year before. They were down by 42% from $72.1 million in tender 4, which had ended in March. Tender 6 would have offered about 230,000 carats of rough diamonds from the Cullinan mine and 150,000 from Finsch, both in South Africa.
Duffy says Petra’s ability to be flexible in the timing of its tenders is thanks to the company’s strong balance sheet, and it won’t need to draw on its revolving credit facility. Petra expects to announce annual results on September 12.
Current stock price: 68.20 pence, down 1.2% on Wednesday in London
12-month change: down 39%
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