Petra Diamonds said that its first tender of the fiscal year 2024 produced $79.3 million in income from the sale of 696,194 carats. Despite a high level of attendance at the tender event, demand was lower than expected due to the end of the summer vacation time. It stated that while prices varied, the average prices for diamonds mined from the Cullinan Mine and Finsch improved due to a more favorable product mix.
In comparison to the preceding tender, Tender 5 of FY 2023, which finished in May 2023, like-for-like prices fell by 4.3%. A 20.9 carat yellow diamond from the Cullinan Mine sold for an astonishing $1.7 million, which amounts to nearly $82,630 per carat. In contrast, demand for stones in the 2-10 carat size category was slower, resulting in a price fall of roughly 14% compared to Tender 5. Despite these swings, smaller categories remained resilient, with prices rising by 1-2%.
A conservative approach to inventory management was evident in the midstream industry against the backdrop of macroeconomic concerns typified by high interest and inflation rates. Nonetheless, signs of a progressive drop in these rates have surfaced, lending credence to the anticipation of higher demand in the medium term as a result of a structural supply deficiency.