Petra Diamonds awaits 'green shoots' of demand in wake of price dive
Africa-focused Petra Diamonds (LSX:PDL) sees "green shoots" of demand in the wake of a price slump this year for the precious gems.
Speaking to Bloomberg News Petra CEO Johan Dippenaar said that "there are definitely some green shoots out there" and noted that the company is seeing good attendance at its auctions in Johannesburg and Antwerp.
Prices for unpolished diamonds plunged around 19% this year, brutally snapping a three year winning streak in which prices rose over 20% each year and producers scrambled to keep pace with demand.
According to Dippenaar once investors that Europe is not destined for imminent collapse "confidence will return slowly but surely."
Petra recently announced it expects full year diamond output for the year ending June 2013 to surge by 30%, and that the company is well on track to meet it target of 5 million carats of production for the full year 2019.
Petra is the largest listed diamond group on the London Stock Exchange with operating mines in South Africa and Tanzania.