Petra Diamonds has decided to postpone its first diamond tender in South Africa, originally planned for August-September, as part of a strategy to manage rough diamond supply amidst a soft market.
Richard Duffy, CEO of Petra, stated, “We have chosen to delay our upcoming tender from our South African operations to support efforts by major producers to limit supply during this period of weaker demand.”
Petra, which currently operates diamond mines in South Africa including Cullinan and Finsch (having recently sold the Koffiefontein mine), intends to proceed with the sale of rough diamonds from its Williamson mine in Tanzania.
The company anticipates that withholding rough diamonds temporarily will lead to better pricing opportunities as demand traditionally strengthens heading into the holiday season.
Duffy added, “We expect that disciplined supply management, coupled with anticipated stronger demand as we approach the festive season, will bolster prices later this year. Our recent financial measures have provided us with flexibility to adjust our tender schedules according to market conditions, supported by sufficient liquidity from our existing credit facilities.”
Petra plans to consolidate the diamonds originally slated for its first tender with those intended for its subsequent tender in mid-October.
