Petra Diamonds Ltd on Wednesday reported lower sales and prices in its fifth tender of the financial year, as it postponed the sale of goods from its flagship Cullinan mine due to recent US trade tariffs.
The South Africa and Tanzania-focused diamond miner said it sold 175,643 carats from its Finsch and Williamson mines for $18 million in tender 5 of financial 2025, down from 186,244 carats sold for $21 million a year earlier.
The average price per carat fell 12% year-on-year to $101 from $115.
However, prices rose 9% from the prior tender in February, driven by an 8% increase in like-for-like prices and a favourable product mix.
Petra postponed the Cullinan tender, which was set to include around 200,000 carats, citing uncertainty triggered by the recent announcement of US import tariffs on non-industrial diamonds. The firm said it will wait for greater clarity before proceeding with the sale to help secure ‘more supportive market prices.’
The Cullinan mine, long known for producing high-value stones, has recently struggled with product mix variability. Petra said fewer high-quality stones above 10.8 carats were recovered than expected, weighing on revenues in previous tenders. Nonetheless, recent discoveries at the site, including an 81-carat D-colour type II gem, may support average prices in the next sale.
Year-to-date revenue from diamond sales stands at $103 million, down from $138 million for the same period in financial 2024.
Petra warned it is now unlikely to meet its net free cash flow generation target for FY25 due to continued market weakness and the product mix challenges at Cullinan. The firm has been cutting costs and streamlining operations as part of a restructuring plan launched in December.
Petra said it will update the market on its third-quarter performance and the business restructuring alongside the postponed Cullinan tender results once market conditions stabilise.
Shares in Petra Diamonds closed 5.4% down at 26.50 pence each in London on Wednesday.
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