Petra Diamonds postpones first tender of new financial year

6th Aug 2024 12:56

(Sharecast News) - Petra Diamonds announced the postponement of its first tender for the 2025 financial year on Tuesday, originally scheduled for August and September.

The London-listed company said the rough diamond parcels from its South African operations, initially planned for the tender, would now be offered as part of the second tender, expected to close in mid-October.

It said the schedule for the tender from its Williamson mine remained unchanged.

Chief executive officer Richard Duffy said the decision to defer the tender was a proactive measure aimed at supporting efforts by major diamond producers to limit supply during a period of weaker demand.

Duffy expressed optimism that the supply discipline, combined with the typically stronger demand seen during the festive season, could help bolster prices later in the year.

"Our recent steps to create a stronger balance sheet have provided us with flexibility around the timing of our tenders to respond to prevailing market conditions and we have adequate liquidity, including available and undrawn balances on our existing revolving credit facility, to fund our working capital requirements," he explained.

At 1233 BST, shares in Petra Diamonds were flat at 29.9p.

Reporting by Josh White for Sharecast.com.