In a bold move to ride out the rocky diamond market, Petra Diamonds is ditching its old-school tender calendar and going full freestyle — think “sell when it makes sense” vibes. ✨
🚨 What’s Happening?
Petra just pulled in $53 million from its latest two tenders, selling over 613,000 carats from its Cullinan and Finsch mines. That’s a 29% jump in volume compared to February — but let’s not celebrate too fast. Even with a slight price bump to $86 per carat, it’s still down 16% from last year. Yikes.
🧊 Why the Drop?
Cullinan’s output wasn’t sparkling — literally. Quality issues caused sales delays in April and May. And while Finsch did better thanks to smoother ore access, the overall product mix dragged prices down.
💰 Petra’s Game Plan:
- No more regular diamond auctions.
- Sales will be reported quarterly based on market timing and vibes.
- It’s a pivot from structure to spontaneity — and it might be what they need.
📊 Year-to-date Recap:
- 2.39 million carats sold
- $239 million revenue (vs. $329M this time last year 😬)
📉 But There's More…
To stay afloat, Petra tapped an extra $33 million in debt, pushing total net debt to $258 million by March. Refinancing talks are underway, and meanwhile, they’re trimming the fat — selling their Tanzanian mine for $16M and exiting the Koffiefontein project.
💥 Market Reaction?
Investors weren’t exactly thrilled. Shares dropped 3.5%, landing at 19.5 pence — valuing the company at around £38 million ($51 million). Not great, but Petra’s hoping this bold shift will be the diamond in the rough.