Petra Diamonds sold the 41.82-carat blue diamond it recovered in January, though it is keeping information about the stone's buyer under wraps for now. Petra operates two diamond mines, both in South Africa: Cullinan and Finsch.
London-A sale of a big blue diamond gave Petra Diamonds Ltd. a boost in the third quarter though the mining company noted continued price weakness in the market overall, especially for smaller size goods.
The London-based diamond miner reported last week that third quarter sales totaled 781,797 carats, a 58 percent increase when compared with the second quarter (494,237 carats) and a 40 percent increase (558,651 carats) over Q3 2024.
In dollar terms, sales totaled $68 million, up 39 percent quarter-on-quarter and 64 percent year-over-year.
Petra's average realized price was down quarter-on-quarter, dropping 11 percent from $98 in Q2 to $87 in Q3, but rose 17 percent year-over-year.
The company attributed the quarter-on-quarter decline to a 15 percent reduction in like-for-like prices across all diamond sizes while noting that prices for smaller goods remain particularly soft.
"The quarter experienced further price weakness in the diamond market, particularly in the smaller size segments. This has impacted both [of our] mines, but unlike the Cullinan Mine, whose product mix was able to partly mitigate the overall reduced prices achieved, Finsch did not have that benefit."
Average price per carat for rough diamonds recovered from the Finsch mine, which mostly produces smaller goods, dropped 22 percent quarter-on-quarter, while Cullinan's price per carat was down only 9 percent.
This weakness at the lower end of the market, as well as "continuing global uncertainties," forced the company to lower its pricing guidance for Finsch and hold steady on Cullinan even though the mine is outperforming so far this year.
Petra now forecasts that Finsch's price per carat will land between $60 and $70 in FY 2026, down from its previous projection of $75 to $85 per carat.
The price-per-carat forecast for Cullinan remains unchanged at $85 to $105 even though its year-to-date average is $118 per carat.
Petra's Q3 revenue and average price per carat included the sale of the 41.82-carat Type IIb blue diamond of "exceptional color and clarity" unearthed at the Cullinan Mine in January.
The mining company said it sold the stone via tender. It received a payment up front and retained "significant economic interest" in the sale of the diamond after it's polished, which could take about 12 months.
Petra said due to the terms of the agreement, it cannot disclose the name of the buyer or how much was paid for the diamond at this point, though it did reveal that the stone will be cut in South Africa.
"While the overall market remains challenging, especially in the smaller-sized segments, recovering a sizeable, exceptional quality diamond demonstrates the quality of Cullinan Mine's significant resource," said Vivek Gadodia and Juan Kemp, Petra's joint CEOs.
"The agreement we have reached on this blue stone will enable leveraging considerable experience in the manufacturing and sale of polished diamonds to extract maximum value for Petra while also allowing for the cutting and polishing of this stone in South Africa and we look forward to seeing the ultimate outcome of this magnificent gem."
