Petra Cuts Price Forecasts and Announces Job Losses
December 23, 24
(IDEX Online) - Petra saw like-for-like prices drop by 7 per cent at its last tender of 2024, and has cut its pricing assumptions for next year amid "prevailing market weakness".
The UK-based miner also announced an unspecified number of job losses and "additional cash generation and savings initiatives".
But CEO Richard Duffy said he was encouraged by the majors' "ongoing discipline around restricting the volume of rough diamonds to support the market and initiatives by upstream, midstream and retail sectors to collaborate in the category marketing of diamonds".
And he noted an encouraging 3 per cent increase min prices in the 5 carat to 10.8 carat category.
Petra raised $71m from its December tender, compared to $76m from October, when it rolled two tenders in one because of weak demand.
The average price per carat fell 20 per cent, from $126 in October to $101. Sales volume was up 17 per cent in December, from 600,161 carats to 700,803 carats.
Petra has revised down its average price per carat forecasts for each of its three mines. Cullinan is now $120 to $130 (originally $125 to $135), and Finsch is now $80 to $90 (down from $98 to $105). Both mines are in South Africa.
The revised price forecast for Williamson, in Tanzania, is $170 to $200 (down from $200 to $225).
Pic courtesy Petra Diamonds, shows Finsch mine.