Petra Diamonds Revenue Drops to $38 Million as Debt Rises and Finsch Mine Remains Suspended
London-listed Petra Diamonds reported a sharp decline in fourth-quarter revenue as financial pressure and operational challenges continued across the business.
Revenue for the fourth quarter of the 2026 financial year fell to $38 million from $68 million in the third quarter, while consolidated net debt increased to $322 million as at June 30, from $298 million at March 31.
The business rescue process at the Finsch mine in South Africa’s Northern Cape remains ongoing, with production still suspended.
Business rescue practitioners are expected to submit their recommended business plan for voting during the first half of August.
Petra has also launched a Section 189A labour restructuring process and is pursuing production and business improvement initiatives at its Cullinan mine to strengthen cash generation.
Amid its constrained cash position, Petra secured short-term support from its senior lender, including the deferral of about $6 million in July interest payments until January 2027 and a R300 million working capital facility running until January 2028.
The company is also preparing for refinancing discussions, with the aim of agreeing on non-binding commercial terms by the end of October.
Meanwhile, Petra marked nine consecutive years without a fatality in April and reached nine million fatality-free shifts in June.
The company also reported a ransomware incident late in the fourth quarter that affected parts of its IT environment.
Recovery efforts remain under way, while workarounds have been implemented to minimise disruption to procurement, finance and other administrative processes.
CEO Vivek Gadodia said the company was navigating continued pressure from geopolitical tensions, changes in the smaller-sized diamond market and a strong rand.
He said Petra would remain focused on maintaining safe operations and delivering on its short-term targets.
