Petra Diamonds Reports Tender Revenues of US$86.2 million

Petra Diamonds Ltd. (LSE:PDL) announced the closure of its second tender for the first half of its 2016 fiscal year. The company sold 606,080 carats for revenues of US$86.2 million.
The tender included a 23.16-carat pink diamond, which sold for US$10.05 million, as well as unsold packages from Petra’s first tender for the first half of the 2016 fiscal year.
Other highlights are as follows:

• All goods were sold, with the exception of ca. 3,200 carats with an estimated value of around US$166,000.
• Pricing on a like for like basis was flat in comparison to Petra’s first tender of FY 2016, however the expected improvement in product mix has favourably impacted the average value per carat achieved for each of the Company’s operations.
• As noted in previous announcements, product mix can vary significantly from tender to tender, but Petra has guided for an improved product mix in FY 2016 due to the shift from the old diluted mining blocks at its underground mines in South Africa to the new undiluted mining blocks, as well as a lesser reliance on production from the Group’s lower value tailings resources. The first significant input of undiluted ore is on track to contribute to the Group’s production profile from H2 FY 2016 (1 January to 30 June 2016) onwards.
• Rough diamond prices remain down ca. 9% for FY 2016 to date on a like for like basis in comparison to Petra’s actual results for Q4 FY 2015. However the impact of this on Petra’s financial results has been mitigated by the significant weakening of the South African Rand over this period (from ZAR12.21/USD1 on 30 June 2015 to over ZAR15.00/USD1 on 10 December 2015).

Click here to read the full Petra Diamonds Ltd. (LSE:PDL) press release.