REG-Petra Diamonds Limited: Q3 FY 2026 Operating Update
Today 07:00
8 May 2026 LSE: PDL
Petra Diamonds Limited
Q3 FY 2026 Operating Update
Vivek Gadodia and Juan Kemp, interim joint Chief Executive Officers of Petra,
commented:
“Q3 FY 2026 reflected steady operational performance, with Finsch performing
largely to plan while Cullinan focused on recovering from weather-related
disruptions as noted in our half-year results.
Sales increased to US$68 million, supported by the sale of the 41.82 carat
Type IIb blue diamond, although pricing remains under pressure, particularly
across the smaller size fractions within the product mixes at both our mines.
Our tenders also experienced headwinds as a result of the Middle East conflict
which led to travel disruptions.
The rand also strengthened during the quarter, averaging ZAR16.34:US$1, adding
further pressure to cash generation. Net debt increased to US$298 million at
31 March 2026 (compared to US$284 million at 31 Dec 2025), with the Group’s
revolving credit facility fully drawn.
Against this backdrop, Management has embarked upon an immediate cost and
capital expenditure reduction assessment to preserve liquidity across the
Group. We are currently reviewing the phasing of operating and capital
expenditure, prioritising mining areas that offer the best near-term value,
and minimizing non-core operating and capital expenditure.
At Cullinan, in addition to optimising operating and capital expenditure, we
have shifted our focus on maximising production from the areas of the ore body
that are known to contain high value Type-II stones, which are the Eastern
areas of the C-Cut. This has already resulted in, and will continue to result
in, a reduction in carats recovered from the CC1E (which is at a much higher
grade and was the basis of the current mining plan and guidance). This
decision has been taken to ensure the product mix at Cullinan Mine is able to
withstand the on-going weakness in the smaller size fractions through the
recovery of high value Type-II stones. We are also evaluating the appropriate
capital profile for Cullinan Mine, recognising the need to balance liquidity
protection with future production resilience.
Given the work underway to revise operating plans at the Cullinan Mine, and
the focus on producing higher valued carats (but at a lower grade compared to
CC1E), it is unlikely that full year carat production guidance at CDM will be
achieved and is therefore suspended for the remainder of the year.”
Highlights vs Q2 FY 2026
* LTIFR and LTIs are 0.42 and 3 respectively (Q2 FY
2026: 0.14 and 1), while the LTIFR and LTIs are 0.28 and 6 respectively for
the first 9 months of FY 2026 (first nine months of FY 2025: 0.38 and 9).
* Ore processed reduced 4% to 1.5Mt from 1.6Mt with
performance at Cullinan Mine impacted by power interruptions due to adverse
weather, and deterioration of underground road conditions due to water
ingress, impacting machine availability and reliability. ROM grade performance
at Finsch continued to improve.
* Revenue amounted to US$68 million (Q2 FY 2026: US$49
million), including proceeds from the sale of the 41.82 carat Type IIb blue
stone from our Cullinan Mine.
* The South African Rand performance continued to exert
pressure during the quarter, averaging ZAR16.34:US$1 (Q2 FY 2026:
ZAR17.20:US$1).
* Bank loans and borrowings represent the Group’s
ZAR1.75 billion (US$102 million) revolving credit facility (RCF). As at 31
March 2026, ZAR1.75 billion (US$102 million) had been drawn, following a
ZAR195 million (US$11 million) drawdown from the RCF in January 2026.
* Consolidated net debt increased to US$298 million as
at 31 March 2026 (31 December 2025: US$284 million) following the draw-down on
the RCF.
Operating Summary
Safety, sales and production Unit Three months Nine months YTD
Q3 FY 2026 Q2 FY 2026 Var. Q3 FY 2025 FY 2026 FY 2025 Var.
Safety
LTIFR - 0.42 0.14 +200% 0.42 0.28 0.38 -26%
LTIs Number 3 1 +200% 3 6 9 -33%
Sales
Diamonds sold Carats 781,797 494,237 +58% 558,651 1,745,320 1,672,034 +4%
Revenue 1 US$m 68 49 +39% 42 168 156 +8%
Production
ROM tonnes Tonnes 1,498,034 1,564,679 -4% 1,585,838 4,650,523 4,793,312 -3%
Tailings and other tonnes Tonnes 202,315 193,850 +4% 124,703 550,920 333,330 +65%
Total tonnes treated Tonnes 1,700,349 1,758,529 -3% 1,710,541 5,201,443 5,126,642 +1%
ROM diamonds Carats 549,433 579,087 -5% 563,875 1,694,270 1,649,541 +3%
Tailings and other diamonds Carats 57,963 54,999 +5% 45,920 156,548 159,920 -2%
Total diamonds Carats 607,396 634,086 -4% 609,795 1,850,818 1,809,461 +1%
1 Revenue reflects proceeds from the sale of
rough diamonds and excludes revenue from profit share arrangements
Production during Q3 was steady, with Finsch delivering largely against plan,
while Cullinan Mine shifted its focus of maximising production from the
eastern parts of the C-Cut, that are known to contain larger and higher value
Type-II stones – which is a product category that is showing a recovery due
to a scarcity of supply in these segments. This is a conscious shift to first
maximize production from the C-Cut and not from the CC1E (which was the basis
of the guidance). While this will result in a reduction of overall carats
recovered from the Cullinan Mine due to the C-Cut having a much lower grade,
Management believes this is prudent given the impact of the weaker diamond
prices on the smaller size segments.
Furthermore, certain initiatives that were identified for increasing carat
recoveries at CC1E to mitigate the impact of the weather disruptions have been
put on hold in lieu of the new strategy of maximising production from the
eastern parts of the C-Cut, as well as reducing cost to preserve liquidity.
This, combined with maximizing production from the C-Cut (which comes at a
lower grade), will therefore result in not achieving the Cullinan ROM carats
guidance. Guidance for future years will be updated once the revision of
Cullinan Mine’s operating plan is complete.
Review of Finsch
The Company has, over the past years, been focused on an internal
restructuring that has resulted in a simpler and more streamlined business and
operating model. This has included the sale of the Koffiefontein and
Williamson mines, multiple labour restructuring initiatives and an
optimisation and smoothing of the Group's capital development profiles.
Over the last 9-12 months, the smaller size segment has been experiencing
continued weakness adding pressure to cash generation. In parallel, the rand
has strengthened during the quarter, averaging ZAR16.34:US$1. As a result, the
Company has decided to undertake a cost reduction assessment to preserve
liquidity across the Group. The Company is considering suspending further
capital expenditure at Finsch.
The Company is in the process of assessing the current financial situation of
the Finsch mine and the related implications of its financial situation. The
Company anticipates its review to be finalised during the course of May 2026.
Depending on the outcome of such assessment, the Company will consider all
options, including, but not limited to, operational cost cutting and other
measures in respect of Finsch. No decision has been taken at this time.
Next steps
The Company will release further announcements in due course, as appropriate.
The completion of the assessment of the financial situation of Finsch may take
significantly longer than the Group currently anticipates. There can be no
guarantee that the options regarding Finsch will be as currently contemplated
by Management and will be implemented on the terms set out above.
The information communicated in this announcement is inside information for
the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union (Withdrawal) Act
2018 (" MAR "), and is disclosed in
accordance with the Company's obligations under Article 17 of MAR. Upon the
publication of this announcement via a Regulatory Information Service, this
inside information will be considered to be in the public domain. The person
responsible for arranging for the release of this announcement on behalf of
the Company is Tumi Dakada, acting Company Secretary.
FURTHER INFORMATION
For further information, please contact:
Investor Relations, London
Telephone: +44 (0)7495470187
Kelsey Traynor\Julia Stone
investorrelations@petradiamonds.com
About Petra Diamonds Limited
Petra Diamonds is a leading independent diamond mining group and a supplier of
gem quality rough diamonds to the international market. The Company’s
portfolio incorporates interests in two underground mines in South Africa
(Cullinan Mine and Finsch).
Petra's strategy is to focus on value rather than volume production by
optimising recoveries from its high-quality asset base in order to maximise
their efficiency and profitability. The Group has a significant resource base
which supports the potential for long-life operations.
Petra strives to conduct all operations according to the highest ethical
standards and only operates in countries which are members of the Kimberley
Process. The Company aims to generate tangible value for each of its
stakeholders, thereby contributing to the socio-economic development of its
host countries and supporting long-term sustainable operations to the benefit
of its employees, partners and communities.
Petra is quoted on the Main Market of the London Stock Exchange under the
ticker 'PDL'. The Company’s loan notes, due in 2030, are listed on EuroNext
Dublin (Irish Stock Exchange). For more information, visit
www.petradiamonds.com.
Corporate and financial summary 31 March 2026
Unit As at 31 March 2026 As at 31 December 2025 As at 30 September 2025 As at 30 June 2025
Total cash at bank¹ ,2 US$m 34 55 46 52
Diamond debtors US$m 21 - 2 12
Diamond inventories 3 US$m Carats 29 434,182 46 608,217 44 468,733 26 328,689
2030 Loan Notes 4 US$m 251 246 n/a n/a
2026 Loan Notes 4 US$m n/a n/a 233 226
Bank loans and borrowings 5 US$m 102 92 102 99
Consolidated Net Debt 6 US$m 298 284 287 261
Bank facilities undrawn and available 5 US$m - 11 - -
Notes:
1. The following exchange rates have been used for this
announcement: average for 9M FY 2026 US$1:ZAR17.05
(FY 2025: US$1:ZAR18.15); closing
rate as at 31 March 2026 US$1:ZAR16.93 (31 December 2025 US$1:ZAR16.56; 30
September 2025: ZAR17.25; 30 June 2025: ZAR17.75 and 31 March 2025 ZAR18.30).
2. The Group’s cash balances comprise unrestricted
balances of US$15 million, and restricted cash balances of US$19 million.
3. Recorded at the lower of cost and net realisable
value.
4. The 2030 Loan Notes have a carrying value of US$251
million which represents the nominal value of US$228 million, plus fair value
adjustments at modification date in terms of IFRS 9 and net of any unamortised
transaction costs capitalised, issued following the Refinancing completed
during November 2025.
The 2026 Loan Notes represent the gross capital of US$228 million (including
PIK), plus accrued and unpaid interest for the relevant periods, up to the
refinancing date
1. Bank loans and borrowings represent amounts drawn
under the Group’s refinanced
ZAR1.75 billion (US$102 million) Revolving Credit
Facility (RCF) and comprise capital draw-down of ZAR1,750 million (US$103
million), net of unamortised transaction costs capitalised of ZAR55 million
(US$3 million) and includes accrued interest of ZAR32 million (US$2 million).
As at 31 March 2026, the full facility was drawn.
2. Consolidated Net Debt is bank loans and borrowings
plus loan notes, less total cash and diamond debtors.
Mine-by-mine tables:
Cullinan Mine – South Africa
Unit Three months Nine months YTD
Q3 FY 2026 Q2 FY 2026 Var. Q3 FY 2025 FY 2026 FY 2025 Var.
Sales
Revenue US$m 50 33 +52% 23 119 100 +18%
Diamonds sold Carats 453,518 271,983 +67% 294,592 1,003,076 934,661 +7%
Average price per carat US$ 109 120 -9% 77 118 107 +10%
ROM Production
Tonnes treated Tonnes 953,801 1,006,998 -5% 1,000,455 2,920,057 3,197,812 -9%
Diamonds produced Carats 294,344 321,564 -8% 294,220 902,805 939,425 -4%
Grade 1 Cpht 30.9 31.9 -3% 29.4 30.9 29.4 +5%
Tailings Production
Tonnes treated Tonnes 202,315 193,850 +4% 124,703 550,920 333,330 +65%
Diamonds produced Carats 57,963 54,999 +5% 45,920 156,549 159,920 -2%
Grade 1 Cpht 28.7 28.4 +1% 36.8 28.4 48.0 -41%
Total Production
Tonnes treated Tonnes 1,156,116 1,200,848 -4% 1,125,158 3,470,977 3,531,142 -2%
Diamonds produced Carats 352,307 376,563 -6% 340,140 1,059,354 1,099,345 -4%
Note: 1.
Petra is not able to precisely measure the ROM /
tailings grade split because ore from both sources is processed through the
same plant; the Company therefore back-calculates the grade with reference to
resource grades.
Finsch – South Africa
Unit Three months Nine months YTD
Q3 FY 2026 Q2 FY 2026 Var. Q3 FY 2025 FY 2026 FY 2025 Var.
Sales
Revenue US$m 18 16 +13% 19 50 56 -11%
Diamonds sold Carats 328,279 222,254 +48% 264,059 742,244 737,373 +1%
Average price per carat US$ 56 72 -22% 72 67 76 -12%
ROM Production
Tonnes treated Tonnes 544,233 557,681 -2% 585,383 1,730,466 1,595,499 +8%
Diamonds produced Carats 255,089 257,523 -1% 269,656 791,465 710,116 +11%
Grade Cpht 46.9 46.2 +2% 46.1 45.7 44.5 +3%
Notes:
1. The following definitions have been used in this announcement:
1. cpht: carats per hundred tonnes
2. LTIs: lost time injuries
3. LTIFR: lost time injury frequency rate, calculated as the number
of LTIs multiplied by 200,000 and divided by the number of hours worked
4. FY: financial year ending 30 June
5. CY: calendar year ending 31 December
6. H: half of the financial year
7. ROM: run-of-mine (i.e. production from the primary orebody)
8. m: million
9. Mt: million tonnes
10. Mcts: million carats
11. kcts: thousand carats
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