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Yahoo
11-04-2025
- Business
- Yahoo
Petra Diamonds delays sales from Cullinan mine amid US tariff uncertainty
South Africa-active Petra Diamonds has announced a delay in the sale of diamonds from its Cullinan mine in South Africa, citing the need for clarity on the impact of recent US tariffs, which have led to uncertainty in the diamond market. The Cullinan mine is known for producing the largest-ever gem-quality diamond 120 years ago. The mine's Tender 5 sales were initially set to be completed by the end of this week. Petra has chosen to defer the sales of approximately 200,000 carats until the tariff impact becomes clear. The tariffs announced by US President Donald Trump affect a range of US imports, including diamonds, prompting a global business reassessment and sparking fears of a trade war potentially hindering economic growth, reported Reuters. South Africa, a key diamond exporter to the US, is directly impacted by these developments. Petra stated: "We believe this decision will lead to more supportive market prices being obtained for the Cullinan Mine goods." The company has already sold gems from its Finsch mine in South Africa and Williamson mine in Tanzania, before the tariffs were announced. The Finsch and Williamson sales fetched $18m (R350.63m) for 176,000 carats, marking a 9% price increase from Tender 4. Petra has also announced it is engaged in a restructuring plan due to increasing losses amid a prolonged downturn in the diamond market. The company has completed a section 189 retrenchment process as part of its Business Restructuring Plan announced in December 2024. The company is finalising its life of mine reviews, aiming to right-size its cost base. Currently, the Cullinan mine has seen a decline in high-quality diamond production, further complicating Petra's position in the market. The Cullinan mine has faced variability in its product mix, particularly a shortage of gem-quality stones larger than 10.8 carats, affecting revenues and average prices in previous tenders. Excluding Cullinan mine goods, Petra's year-to-date revenue for fiscal year 2025 (FY25) from rough diamond sales stands at $103m, down from $138m during the same period in FY24. Despite meeting cost and capital expenditure targets for FY25, Petra is unlikely to achieve its net free cash flow generation goal due to the Cullinan mine's poor product mix and market volatility. This outlook could change if conditions improve in the next three months. Petra anticipates a normalisation of the product mix as fresh ore from the CC1E project at the Cullinan mine increases. A recent 81-carat, high-quality gem discovery offers prospects for improved average prices in upcoming tenders. In January 2025, Petra entered into an agreement to divest its entire shareholding in Tanzania's Williamson Diamonds Limited to Pink Diamonds Investments for up to $16m (£13m). "Petra Diamonds delays sales from Cullinan mine amid US tariff uncertainty" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Zawya
09-04-2025
- Business
- Zawya
South Africa: Petra Diamonds delays Cullinan Mine tender amid US tariff uncertainty
Petra Diamonds, which has the world's third-largest resource of diamonds, said on Wednesday it had delayed the sale of gems from its Cullinan Mine in South Africa until there was greater clarity around the impact of U.S. tariffs. The company, as part of its periodic tenders, had already sold diamonds from its Finsch mine, also in South Africa, and its Williamson mine in Tanzania before U.S. President Donald Trump unleashed a barrage of tariffs last week. WHY IT'S IMPORTANT These tariffs, applicable on U.S. imports ranging from dental floss to diamonds, have left companies globally scrambling to rethink their business and sparked concerns of a trade war that would stunt economic growth. South Africa is one of the biggest exporters of diamonds to the United States, along with India. CONTEXT Petra, already struggling with widening losses due to prolonged weakness in the diamond market, is in the midst of a restructuring plan. Moreover, the iconic Cullinan mine, from where the largest ever gem-quality diamond was recovered 120 years ago, has been producing fewer high-quality diamonds recently. That has added to Petra's woes when it enters the market to sell diamonds via tenders, which are timed around specific calendar events and to fit with other regional diamond sales. KEY QUOTE(S) "The U.S. tariffs announcement late last week has resulted in considerable diamond market uncertainty," the diamond miner said. BY THE NUMBERS Petra sold 176,000 carats in gems from its Finsch and Williamson mines for a total of $18 million in its fifth tender this year, a 9% jump in average price from the fourth tender. That was despite withdrawing about 200,000 carats of Cullinan material from the latest tender. However, it has made $103 million in sales overall from the first five tenders this year, a 25% drop from the $138 million it made in the first five tenders last year. MARKET REACTION Petra's shares fell 6.1% to 26.3 pence in early trading. (Reporting by Yamini Kalia in Bengaluru; Editing by Savio D'Souza) Reuters
Reuters
09-04-2025
- Business
- Reuters
Petra Diamonds delays Cullinan Mine tender amid US tariff uncertainty
April 9 (Reuters) - Petra Diamonds (PDL.L), opens new tab, which has the world's third-largest resource of diamonds, said on Wednesday it had delayed the sale of gems from its Cullinan Mine in South Africa until there was greater clarity around the impact of U.S. tariffs. The company, as part of its periodic tenders, had already sold diamonds from its Finsch mine, also in South Africa, and its Williamson mine in Tanzania before U.S. President Donald Trump unleashed a barrage of tariffs last week. These tariffs, applicable on U.S. imports ranging from dental floss to diamonds, have left companies globally scrambling to rethink their business and sparked concerns of a trade war that would stunt economic growth. South Africa is one of the biggest exporters of diamonds to the United States, along with India. Petra, already struggling with widening losses due to prolonged weakness in the diamond market, is in the midst of a restructuring plan. Moreover, the iconic Cullinan mine, from where the largest ever gem-quality diamond was recovered 120 years ago, has been producing fewer high-quality diamonds recently. That has added to Petra's woes when it enters the market to sell diamonds via tenders, which are timed around specific calendar events and to fit with other regional diamond sales. "The U.S. tariffs announcement late last week has resulted in considerable diamond market uncertainty," the diamond miner said. Petra sold 176,000 carats in gems from its Finsch and Williamson mines for a total of $18 million in its fifth tender this year, a 9% jump in average price from the fourth tender. That was despite withdrawing about 200,000 carats of Cullinan material from the latest tender. However, it has made $103 million in sales overall from the first five tenders this year, a 25% drop from the $138 million it made in the first five tenders last year. Petra's shares fell 6.1% to 26.3 pence in early trading.
Yahoo
09-04-2025
- Business
- Yahoo
Petra Diamonds delays Cullinan Mine tender amid US tariff uncertainty
(Reuters) - Petra Diamonds, which has the world's third-largest resource of diamonds, said on Wednesday it had delayed the sale of gems from its Cullinan Mine in South Africa until there was greater clarity around the impact of U.S. tariffs. The company, as part of its periodic tenders, had already sold diamonds from its Finsch mine, also in South Africa, and its Williamson mine in Tanzania before U.S. President Donald Trump unleashed a barrage of tariffs last week. WHY IT'S IMPORTANT These tariffs, applicable on U.S. imports ranging from dental floss to diamonds, have left companies globally scrambling to rethink their business and sparked concerns of a trade war that would stunt economic growth. South Africa is one of the biggest exporters of diamonds to the United States, along with India. CONTEXT Petra, already struggling with widening losses due to prolonged weakness in the diamond market, is in the midst of a restructuring plan. Moreover, the iconic Cullinan mine, from where the largest ever gem-quality diamond was recovered 120 years ago, has been producing fewer high-quality diamonds recently. That has added to Petra's woes when it enters the market to sell diamonds via tenders, which are timed around specific calendar events and to fit with other regional diamond sales. KEY QUOTE(S) "The U.S. tariffs announcement late last week has resulted in considerable diamond market uncertainty," the diamond miner said. BY THE NUMBERS Petra sold 176,000 carats in gems from its Finsch and Williamson mines for a total of $18 million in its fifth tender this year, a 9% jump in average price from the fourth tender. That was despite withdrawing about 200,000 carats of Cullinan material from the latest tender. However, it has made $103 million in sales overall from the first five tenders this year, a 25% drop from the $138 million it made in the first five tenders last year. MARKET REACTION Petra's shares fell 6.1% to 26.3 pence in early trading.
