8th Aug 2025 13:34
(Alliance News) - Petra Diamonds Ltd shares on Friday proposed a refinancing plan, and said diamond sales revenue fell during the 2025 financial year.
Shares in Petra Diamonds were up 38% at 16.95 pence in London on Friday afternoon.
The South Africa and Tanzania-focused diamond miner said diamond sales revenue for the year ended June 30 fell 33% to USD206 million from USD309 million, despite growing 19% in the fourth quarter to USD50 million from USD42 million in the third quarter.
Total diamonds sold over the year declined 18% to 2.4 million carats from 2.9 million carats.
Tender 7 sales in June totalled USD21 million in revenue, 46% lower than USD39 million in tender 5/6, as diamonds sold fell to 283,970 carats from 529,202.
The average price in tender 7 remained unchanged at USD73 per carat.
The average price in the fourth quarter was down 2.7% at USD72 per carat from USD74.
"We have continued to see an improved product mix, especially at Cullinan mine," said interim joint Chief Executive Officers Vivek Gadodia and Juan Kemp. "This is reflected in our first tender of FY26, where we achieved revenue of [around] USD25 million through the sale of 245,000 carats, with the Cullinan Mine achieving USD109 [per carat] and Finsch achieving USD92 [per carat].
"We expect this product mix recovery to continue as we mine higher amounts of fresh ore over [financial 2026]."
Petra also on Friday said it has agreed in principle to a long-term solution for refinancing.
This includes a USD25 million rights issue at 16.5p per share, extending the maturity date of its senior secured bank debt to December 2029 and extending its senior secured second lien notes to March 2030.
The refinancing proposals remain subject to shareholder approval.
"We have been working hard to streamline and optimise our business to unlock a compelling long-term value proposition leveraging our two world class assets. On the back of this effort, we are pleased to announce today a path towards refinancing our debt that is due to mature in [the first quarter of 2026]," said joint CEO Gadodia.
"We remain focused on implementing the refinancing as efficiently as possible, while also delivering on our updated business plan."
By Michael Hennessey, Alliance News reporter
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