JOHANNESBURG (miningweekly.com) – A “firmer” diamond market was expected through to year-end and into the first half of the 2014 calendar year, despite lower prices having squeezed London-listed Petra Diamonds’ revenue for the first quarter of its 2014 financial year.

In the quarter ended September 30, the diamond market had experienced a seasonally weaker price performance in the post summer period, combined with liquidity constraints in the world's most significant diamond cutting and polishing centre, the Indian market, with Petra’s revenue further impacted by the product mix – increased volumes of finer diamonds from Finsch, combined with increased lower-value tailings production, said Petra CEO Johan Dippenaar.

The three months under review saw an 85% jump in the number of carats sold, but only a 27% rise in revenue, as the average price achieved fell 7% from that achieved during the second half of the 2013 financial year.

First-quarter revenue rose to $65.1-million, from the sale of 589 233 ct during the quarter under review, from reported revenue of $51.1-million from the sale of 318 700 ct during the corresponding period the year before.

However, prices for Petra's product offering, which was underpinned by significant volumes of commercial, mass-market goods, showed a degree of resilience, Dippenaar pointed out.

The group's second tender of the 2014 financial year closed in the second quarter of the 2014 financial year, earning revenue of $55.7-million from the sale of 442 566 ct.

Cumulative revenues for the financial year, to date, were now at $120.8-million, he said.

In line with Petra's standard sales cycle, one tender was held in the first quarter and two tenders in the second quarter, while four tenders were scheduled for the second half of the financial year.

Further, Dippenaar expected substantial interest and enhanced average prices during the group’s November tender, with a range of “special” high-quality stones, including that of the recently recovered exceptional 126.4 ct and 91.5 ct white stones from the Cullinan mine.

Petra noted that both stones were examples of the sizeable Type IIa diamonds that “the Cullinan mine was known for” and were considered to be of top colour and quality.

“With an increased recovery of higher-value stones during the second quarter, combined with improved market conditions, Petra maintains its overall guidance for average prices for the full 2014 financial year,” Dippenaar noted.

A production rate of 816 735 ct during the first quarter of the 2014 financial year was recorded – a 25% hike compared with the 654 690 ct delivered during the corresponding period in the prior year.