London-listed Petra Diamonds has lowered its diamond price forecasts for 2025 and initiated a Section 189 retrenchment process affecting the group and its South African operations support functions.
These measures are aimed at cutting costs and generating additional cash amid ongoing challenges in the global diamond market.
To lead the restructuring efforts, the company has appointed Vivek Gadodia as Chief Restructuring Officer.
“Refinancing discussions have been deferred to 2025 to allow these cash-generation initiatives to take effect and to benefit from greater market certainty.
We remain confident of successfully refinancing the 2026 2L Notes and will provide an update in February during our interim results,” said CEO Richard Duffy.
Petra’s third sales cycle of the year generated $71 million from the sale of 700,803 carats, bringing total sales for the year to $146 million from 1.3 million carats.
“Like-for-like prices declined by 7% compared to the previous tender in October, reflecting weak market conditions across most size ranges. However, we saw a 3% price increase in the 5 to 10.8-carat category,” noted Duffy.
Price Revisions
Given the market downturn, Petra has adjusted its price assumptions for the 2025 financial year:
- Cullinan Mine (South Africa): Revised from $125/ct–$135/ct to $120/ct–$130/ct.
- Finsch Mine (South Africa): Lowered from $98/ct–$105/ct to $80/ct–$90/ct.
- Williamson Mine (Tanzania): Reduced from $200/ct–$225/ct to $170/ct–$200/ct.
Despite market weakness, Duffy expressed optimism about efforts by major producers to limit the supply of rough diamonds, which could stabilize prices.
He also highlighted initiatives across the diamond value chain—upstream, midstream, and retail—focused on category marketing to strengthen demand.
Petra remains committed to navigating current challenges while positioning itself for long-term growth in the evolving diamond market.
