Petra Cancels Tender to Restrict Supply
August 06, 24
(IDEX Online) - Petra today (6 August) said it had canceled its August/September tender to restrict supply amid ongoing weak demand.
Goods from its Cullinan and Finsch mines, in South Africa, will be sold instead at its next tender, which is expected to close in mid-October.
"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," said CEO Richard Duffy.
The UK-based miner said its July tender yielded $38m (from the sale of 337,064 carats), down on $44m its tender in May and $49m in April.
In July 2023 Petra canceled its June tender after a sharp drop in sales the previous month.
In a statement issued today, Duufy said: "We have taken the proactive decision to defer the upcoming August/September tender from our South African operations, to support steps taken by major producers to restrict supply in this weaker demand period.
"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."
A tender of goods from Petra's Williamson mine, in Tanzania, will be go ahead as usual.
Pic courtesy Petra shows the Cullinan mine.