17th Feb 2025 13:35
(Alliance News) - Shares in Petra Diamonds Ltd fell on Monday after the company announced the immediate resignation of Chief Executive Officer Richard Duffy, alongside a wider half-year loss and weaker diamond sales.
The South Africa and Tanzania-focused diamond miner said Duffy stepped down by mutual agreement, effective immediately. The board has appointed Vivek Gadodia and Juan Kemp as joint interim CEOs, with Gadodia overseeing corporate matters and Kemp handling operations.
The leadership change comes after a challenging six months for Petra, marked by weaker diamond prices and operational headwinds. In November, 20% of shares cast at the company's annual meeting voted against Duffy's re-election to the board.
Petra shares were down 19% at 23.69 pence in London on Monday afternoon, giving the company a total market capitalisation of GBP46.0 million.
Petra reported a pretax loss of USD92 million for the six months ended December 31, widening from the USD11 million loss recorded a year prior. Revenue declined to USD115 million from USD164 million, as the company struggled with lower diamond prices and reduced sales volumes.
The company's fourth diamond tender of the financial year yielded USD39 million, down 45% from USD71 million in its third tender. The average price per carat fell 18% to USD83 from USD101 in the third tender, reflecting a weaker product mix and a 6% decline in like-for-like pricing.
Petra said it has intensified cost-cutting efforts, reducing mining and processing costs by 18% to USD131 million from USD159 a year prior. The company said operational free cash flow improved to USD16 million, compared with an outflow of USD21 million a year earlier.
Petra's debt burden increased, with net debt rising to USD215 million, up from USD193 million in June.
Petra said the diamond market "continues to face significant uncertainties", but the company remains focused on strengthening business resilience and successfully refinancing its debt in 2025. The company said expects to re-engage with lenders once it completes a review of its life-of-mine plans.
While diamond prices remain "under pressure", Petra reaffirmed its full-year production guidance of 2.4 million to 2.7 million carats.
By Eva Castanedo, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights reserved.