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Petra Diamonds Ltd - Sales Results for Tender 2 FY2023

24 November 2022

LSE: PDL

PETRA DIAMONDS LIMITED

Sales results for Tender 2 FY 2023

Petra achieves US$61.3 million in sales in its second tender for FY 2023

Richard Duffy, Chief Executive Officer of Petra Diamonds (Petra), said:

“This is a creditable result in the current somewhat muted market, with like-for-like[1] prices 12.6% higher compared to Tender 2 of FY 2022 and 5.1% lower than Tender 1 of FY 2023. Demand for fancy coloured and large white stones continued to be evident despite this being a seasonally weaker period. Subdued demand in China continued to impact pricing in the gem quality 0.75ct up to 5ct size ranges, with some pricing pressure also evident in the 5ct – 10ct range. Pricing across smaller size ranges was largely flat on the previous tender.

Although we continue to expect a supportive diamond market in the medium to longer term as a result of the structural supply deficit, we see current levels of demand continuing into the New Year, albeit with the potential upside of festive season sales and any easing of lockdown restrictions in China.”

Petra announces the results of Tender 2 of FY 2023, at which 447,276 carats were sold for a total of US$61.3 million across Petra’s mining operations.

Rough diamond sales results for the respective periods are set out below:

Tender 2 FY23
Oct / Nov-22

Tender 1 FY23
Sep-22

Variance
T1 FY23 vs
T2 FY23

Tender 2 FY22
Oct-21

YTD FY 2023
after Tenders 1&2

YTD FY 2022
after Tenders 1&2

Diamonds sold (carats)

447,276

520,011

-14%

132,525

967,287

710,712

Sales (US$ million)

61.3

102.9

-40%

21.5

164.1

136.4

Average price (US$/ct)

137

198

-31%

162

170

192

Revenue from Exceptional Stones[2] (US$ million)

50.2

Sales

Volumes for the second tender cycle are typically lower than the first tender cycle given the respective cut-off dates for these cycles. As previously announced, the final closure for Tender 2 FY 2023, originally planned towards the second half of October, was extended as a result of unusual market conditions with some build up in inventory pre-Diwali. This extension resulted in an overall price increase of around 6.4% on the affected parcels. Our third sales tender for FY 2023 is currently planned to close early December 2022 although we will continue to be flexible in our approach.

[1] Like-for-like refers to the change in realised prices between tenders and excludes revenue from all single stones and Exceptional Stones, while normalising for the product mix impact

[2] Petra classifies “Exceptional Stones” as rough diamonds which sell for US$5 million or more each

The results of Tender 2 bring FY 2023 revenue from rough diamond sales to US$164.1 million, with no Exceptional Stone sales YTD, compared to US$136.4 million in the first two tenders of FY 2022, which included a US$50.2 million contribution from Exceptional Stones.

Mine by mine average prices for the respective periods are set out in the table below:

US$/carat

Tender 2
FY23
Oct / Nov-22

Tender 1
FY23
Sep-22

Tender 2
FY22
Oct-21

YTD FY 2023
after
Tenders 1&2

YTD FY 2022
after
Tenders 1&2

FY 2022
12 months to
30 June 2022

Cullinan Mine

113

212

2141

165

2451

1691

Finsch

118

132

109

126

99

77

Williamson

272

297

n/a

286

n/a

3841

Koffiefontein

639

383

461

477

562

581

Note 1: Prices for both Cullinan Mine and Williamson include proceeds from the sale of a number of Exceptional Stones.

Like-for like prices

Whilst like-for-like rough diamond prices declined by 5.1% on Tender 1 FY 2023, they increased 12.6% compared to Tender 2 of FY 2022, with YTD prices up 19.0% on a like-for-like basis compared to the first two tenders of FY 2022.

Product mix

The balance of price movements are attributable to product mix, particularly for the Cullinan Mine, where the previous tender cycle benefited from an increased number of high value stones, which largely normalised in Tender 2 resulting in a lower overall price per carat.

For further information, please contact:

Petra Diamonds, London Telephone: +44 20 7494 8203

Patrick Pittaway investorrelations@petradiamonds.com

Julia Stone

About Petra Diamonds Limited

Petra Diamonds is a leading independent diamond mining group and a supplier of gem quality rough diamonds to the international market. The Company’s portfolio incorporates interests in three underground producing mines in South Africa (Finsch, Cullinan Mine and Koffiefontein) and one open pit mine in Tanzania (Williamson).

Petra's strategy is to focus on value rather than volume production by optimising recoveries from its high-quality asset base in order to maximise their efficiency and profitability. The Group has a significant resource base of 226.6 million carats, which supports the potential for long-life operations.

Petra strives to conduct all operations according to the highest ethical standards and only operates in countries which are members of the Kimberley Process. The Company aims to generate tangible value for each of its stakeholders, thereby contributing to the socio-economic development of its host countries and supporting long-term sustainable operations to the benefit of its employees, partners and communities.

Petra is quoted with a premium listing on the Main Market of the London Stock Exchange under the ticker 'PDL'. The Company’s loan notes due in 2026 are listed on the Irish Stock Exchange and admitted to trading on the Global Exchange Market. For more information, visit www.petradiamonds.com.