Petra Diamonds Posts $26M Adjusted EBITDA Amid Lower Revenue; Cullinan Blue Diamond Highlights Ore Quality
London-listed Petra Diamonds has reported revenue of $100 million for the six months ended December 31, 2025, down from $115 million in the same period a year earlier. The company attributes the decline to the timing of tenders between December 2025 and January 2026.
Strong Diamond Inventory and Product Mix
As of December 31, 2025, Petra held 608,217 carats of diamonds valued at $46 million, compared with 385,878 carats worth $40 million at the end of December 2024.
The average realized price remained stable at $104 per carat, reflecting the positive impact of product mix despite a generally weaker diamond market.
A highlight for the period was the recovery of a 41.82-carat Type IIb blue diamond at the Cullinan mine, underscoring the exceptional quality of the group’s orebodies.
Lower Costs Drive Adjusted EBITDA Growth
Adjusted mining and processing costs fell 27% to $72 million, driven by:
$24 million from diamond inventory movements
$7 million reduction in on-mine cash costs
Partially offset by $3 million currency impacts and $5 million inflation
As a result, adjusted EBITDA increased to $26 million, compared with $15 million in H1 2025, despite lower revenue.
The company reported a basic loss per share of $0.70, or $0.10 on an adjusted basis after accounting for non-controlling interests.
Capital Expenditure and Cash Flow
Capital expenditure for the period rose 13% to $34 million, with spending weighted toward H2 2026. Operational free cash flow showed an outflow of $6 million, compared with an inflow of $16 million in the prior year. This was primarily due to:
Non-recurring diamond debtor releases in H1 2025
Build-up of diamond inventory
Weaker small-diamond prices
Lower operating revenue
Refinancing Strengthens Financial Position
In November 2025, Petra completed a comprehensive refinancing package:
Extension of senior secured bank debt to December 2029
Extension of loan note maturity to 2030
Successful rights issue raising ~$25 million at 16.5p per share
The total cost of refinancing and rights issue fees was approximately $8 million. At the period-end, the group had $36 million in unrestricted cash and $11 million available under its revolving credit facility (RCF). Consolidated net debt stood at $284 million, including fair value adjustments and capitalized costs, with a nominal net debt of $269 million.
Market Conditions and Operational Focus
CEOs Vivek Gadodia and Juan Kemp highlighted the continuing challenges in the diamond market, particularly for smaller stones, which saw a 20% drop in like-for-like prices from Q1 to Q2.
The strong South African rand further pressures profitability, partially mitigated through hedging strategies.
Management continues to enforce strict cost control, capital deferral, and prioritization of high-value ore, aiming to maintain consistent production and optimize working capital.
Strategic Outlook
Looking ahead, Petra Diamonds emphasizes:
Consistent production across its mines
Disciplined cost management
Working capital optimization
Effective execution of capital programs
The H1 2026 results reflect resilience in operational performance and financial management, supported by improved product mix and strategic refinancing, even amid a subdued diamond market and currency headwinds.
Petra’s focus remains on extracting maximum value from high-quality orebodies like Cullinan while navigating market and currency challenges to deliver sustainable returns.
