Petra Diamonds has revised its price expectations for diamonds from its Finsch mine in South Africa, citing ongoing challenges in the global diamond market. The company announced the adjustment in its Half-Year FY 2025 Operating Update, released on January 21.
The price forecast for Finsch has been reduced to 70–80 per carat, down from the previous estimate of 80–90. This change follows similar adjustments across Petra’s operations. At the Cullinan mine, also in South Africa, prices are now expected to range between 120–130 per carat, slightly lower than the 125–135 forecast in December. Meanwhile, the Williamson mine in Tanzania has seen its price projection cut to 170–200 per carat, down from 200–225.
Petra attributed the revisions to continued weakness in diamond prices, as highlighted in its third tender of FY 2025. “Diamond prices remained under pressure at the end of 2024,” the company stated. However, it also pointed to some positive signs, including growing demand for online jewelry in the U.S. and stronger sales in India during the festive and Diwali seasons.
Despite the price challenges, Petra’s production outlook remains unchanged. The company expects to produce between 2.8 million and 3.1 million carats for the full year. CEO Richard Duffy emphasized the company’s strong operational performance in the second quarter of FY 2025, which has helped maintain this steady production forecast.
The adjustments reflect broader difficulties in the diamond industry, but Petra remains hopeful about a recovery in demand, particularly in key markets like the U.S. and India. The company continues to monitor market conditions while focusing on maintaining operational efficiency.
Petra Diamonds’ latest update underscores the volatility of the diamond market but also highlights its resilience and adaptability in navigating these challenges.
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