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REG-Petra Diamonds Ltd: Q4 and FY 2025 Operating Update & Tender 7 sale results

 

 

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.

 

FOR IMMEDIATE RELEASE.

 

 


 

 

 08 August 2025  LSE: PDL  

 

 

Petra Diamonds Limited

(Petra or the Company)

 

Q4 and FY 2025 Operating Update & Tender 7 sale results

 

Vivek Gadodia and Juan Kemp, interim joint Chief Executive Officers of Petra
Diamonds, commented:

 

“We have taken significant steps this year to deliver a simpler and
streamlined business, capable of delivering long term value, through the
implementation of our internal Business Restructuring Plan. The updated
business plan, with a lower cost profile resulting in a saving of c. $18-20
million in cost reductions against prior guidance and a further optimised
capital profile, has formed the basis of engagement with our lenders on
Refinancing our debt maturing in Q1 CY26.  

 

We are pleased to have announced an update on our Refinancing efforts today in
a separate market release. The focus of the Refinancing discussions has been
to preserve cash in the business, while solving for the need to complete our
extension projects, both at the Cullinan Mine and Finsch, to unlock long-term
value. Our focus remains on closing out the Refinancing over the next few
months, while ensuring delivery of our updated business plan.

 

Both Cullinan Mine and Finsch are performing well, and despite multiple
internal restructuring and cost reduction initiatives over the year, we have
delivered overall annual production within guidance for FY 2025.  Finsch is
now operating in line with expectations on the 2-shift system that was
implemented at the beginning of FY25. The change from continuous operations to
a 3-shift configuration has been completed at Cullinan Mine which also
concludes our internal Business Restructuring Plan announced in January 2025.
 

 

During Q4 FY25, Petra achieved a significant milestone of 8 million
fatality-free shifts, a commendable accomplishment in a year marked by
substantial changes in shift configurations, team structures, and reporting
lines. While we have experienced an uptick in our Lost Time Injury Frequency
Rate (LTIFR), we remain focused on reducing our LTIFR to ensure our operations
continue to reflect a strong “health and safety first” culture.

 

Today we also announce the results of our Tender 7 (FY25) sale, which
delivered US$21 million in revenue from 283,970 carats sold. We did see some
positive momentum in the market with like-for-like rough diamond prices
improving by 3% on Tender 5/6 FY 2025 across mostly coarser product
categories. Our product mix at Cullinan Mine also saw an improvement in Tender
7, with notable improvements of gem quality stones across all size fractions.

 

We have continued to see an improved product mix, especially at Cullinan Mine.
This is reflected in our first Tender of FY26, where we achieved revenue of c.
$25 million through the sale of 245 kcts, with the Cullinan Mine achieving
$109/ct and Finsch achieving $92/ct. We expect this product mix recovery to
continue as we mine higher amounts of fresh ore over FY26.

 

We end the year with revenue down 33% compared to FY 2024 at US$206 million,
with Net Debt increasing to US$264 million as at 30 June 2025.

 

We would once again like to acknowledge the resilience shown by our employees
in navigating a very difficult period for the Company and the diamond sector
as whole.”

 

Highlights vs Q3 FY 2025

 
* LTIFR and LTIs increased to 0.48 and 4 respectively (Q3 FY 2025: 0.26 and 3
respectively) 
* Ore processed increased 3% to 1.77Mt at the Cullinan and Finsch Mines,
showing steady state of production while the Company went through the labour
restructures 
* Total revenue amounted to US$50 million (Q3 FY 2025: US$42 million)
* The South African Rand strengthened during the quarter, averaging
ZAR18.29:US$1 (Q3 FY 2025: ZAR18.48:US$1)
* The ZAR1.75 billion (US$99 million) Revolving Credit Facility with Absa Bank
was fully drawn at 30 June 2025 (31 March 2025: US$66 million)
* Consolidated net debt increased to US$264 million as at 30 June 2025 (31
March 2025: US$258 million) 
* Tender 7 sales results delivered $21 million in revenue from 283,970 carats
sold, with an average price of $73 per carat, bringing year to date sales
revenues to $206 million from the sale of 2,359,904 carats sold.
 
* Like-for-like rough diamond prices for goods sold slightly improved by 3% on
Tender 5/6 FY 2025 mainly from coarser goods.
 
* Product mix, especially at Cullinan Mine, normalising and expected to
improve further as we access additional ore from new mining areas in FY26
 
* Completion of the sale of Williamson was announced during May 2025
 
* The S189 at Cullinan Mine was completed, and the operations transitioned
from Continuous Operations to a 3-shift operation
 
* The internal Business Restructuring Plan announced in January 2025 was
concluded during the period
 

 

 

 

Operating Summary

 

                                      Three months                                        Twelve months                
                                      Q4 FY 2025  Q3 FY 2025  Var.  Q4 FY 2024 Restated2  FY 2025    FY 2024    Var.   
 Safety 3                                                                                                              
 LTIFR                        Rate    0.48        0.26        +84%  0.13                  0.28       0.16       +75%   
 LTIs                         Number  4           3           +25%  2                     13         10         +30%   
                                                                                                                       
 Sales                                                                                                                 
 Diamonds sold                Carats  687,870     558,651     +23%  935,089               2,359,904  2,860,865  -18%   
 Revenue 1                    US$m    50          42          +19%  98                    206        309        -33%   
                                                                                                                       
 Production                                                                                                            
 ROM tonnes                   Mt      1,691,762   1,585,838   +7%   1,563,603             6,485,074  6,594,174  -2%    
 Tailings and other tonnes    Mt      74,249      124,703     -40%  107,203               407,579    369,546    +10%   
 Total tonnes treated         Mt      1,766,011   1,710,541   +3%   1,670,806             6,892,653  6,963,720  -1%    
                                                                                                                       
 ROM diamonds                 Carats  599,104     563,875     +6%   521,688               2,248,645  2,270,037  -1%    
 Tailings and other diamonds  Carats  20,270      45,920      -56%  33,526                180,190    136,389    +32%   
 Total diamonds               Carats  619,374     609,795     +2%   555,214               2,428,835  2,406,427  +1%    

1 Revenue reflects proceeds from the sale of rough diamonds and excludes
revenue from profit share arrangements

2 Restated to remove Williamson which is classified as a discontinued
operation 

3 Includes Williamson

 

LTIs and LTIFR

 

The Group reached 8 million fatality-free shifts during the quarter, but
overall saw an increase in LTIFR and LTIs. Petra has reinforced its commitment
to health and safety through various initiatives, including:

 
* Increased management visibility through Visual Felt Leadership interventions
* Peer reviews conducted by Safety Officers and Safety Representatives in
areas outside their usual scope
* Enhanced on-the-job coaching for risk assessments
* Targeted safety blitzes to address specific operational risks
 

These efforts are aimed at strengthening our safety culture and ensuring that
every team member remains vigilant and empowered to work safely.

 

The LTIFR figures currently include data from Williamson Mine, which has a
significantly lower LTIFR compared to the underground mines of Cullinan Mine
and Finsch. Going forward, Williamson will be excluded from group-level
reporting. In future, in addition to the Williamson exclusion, the group’s
LTIFR will also be based on a workforce composition with a higher proportion
of employees in core production roles, given the reduction of non-production
roles both at mine and group level, and may hence result in a higher reported
LTIFR.

 

Q4 and Tender 7 FY 2025 sales results

 

Our seventh tender cycle yielded US$21 million, bringing revenue for FY 2025
to US$206 million, which is 33% lower than the revenue for FY 2024. While
like-for-like prices for FY 2025 compared to FY 2024 declined by 17%, Tender 7
FY 2025 were up 3% compared to combined Tenders 5 and 6, showing signs of some
market recovery, especially in coarse goods.  

 

Overall product mix for Tender 7 FY 2025, which included production to mid-May
2025, was 3% lower than combined Tenders 5 and 6, but Cullinan mine showing a
product mix improvement of 7%.

 

Total revenue for FY 2025 from rough diamond sales is US$206 million compared
to US$309 million in FY 2024. FY 2024 benefited from c. US$50 million of
revenue from unsold diamonds in FY 2023 carried over to H1 FY 2024.

 

                         Tender 7 FY 2025 June 25  Tender 5/6 FY 2025 Apr/June 25  Variance  Tender 7 FY 2024 June 24  FY 2025    FY 2024    
 Diamonds sold (carats)  283,970                   529,202                         -46%      284,289                   2,359,904  2,860,865  
 Sales (US$ million)     21                        39                              -46%      29                        206        309        
 Average price (US$/Ct)  73                        73                              -%        101                       87         108        

 

Revenue for Q4 FY2025 totalled US$50 million, representing a 19% increase from
Q3 FY2025.

 

                         Q4 FY25  Q3 FY25  Variance  Q4 FY24  Variance  
 Diamonds sold (carats)  687,870  558,651  +23%      935,089  -26%      
 Sales (US$ million)     50       42       +19%      98       -49%      
 Average price (US$/Ct)  72       74       -3%       104      -31%      

 

Mine by mine average prices for the respective periods are set out in the
table below:

 

 US$/carat  Tender 7 FY2025 June 25  Tender 5/6 FY 2025 Apr / Jun-25  Q4 FY25  Q3 FY25  Q4 FY24  FY2025  FY 2024  
 Cullinan   77                       72                               73       77       113      96      116      
 Finsch     68                       75                               70       72       93       74      98       

 

Pricing assumptions for FY 2026 to FY 2030 are as follows:

 

                FY 2026     FY 2027     FY 2028      FY 2029      FY 2030      
 Cullinan Mine  85 – 105    95 – 115    105 – 125    105 – 125    105 – 125    
 Finsch         75 – 95     80 – 100    80 – 100     80 – 100     80 – 100     

 

Group guidance for FY 2026 to 2030

 

                             Unit  FY 2026  FY 2027  FY 2028  FY 2029  FY 2030  
 Total carats recovered      Mcts  2.4-2.8  2.7-3.1  3.0-3.5  2.9-3.3  2.7-3.1  
 Cash on-mine costs and G&A  US$m  161-174  158-171  156-169  152-163  150-163  
 Extension capex             US$m  71-76    91-98    71-76    28-31    5-7      
 Sustaining capex            US$m  12-14    10-12    10-12    14-16    14-16    

Notes: Guidance for FY 2026 to 2030 is subject to the Board’s approval of
future budgets

Real amounts stated in FY 2026 money terms using 6% SA CPI & 2.0% US CPI. US$
equivalent for SA operations converted at an exchange rate of USD1:ZAR19.00

Detailed mine-by-mine guidance for FY 2025 to 2030 can be found in the
guidance section of our website:
https://www.petradiamonds.com/investors/shareholder-centre/analysts/

 

 


 

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 Robin Storey, General Counsel
& Company Secretary.

 

For further information please contact

 

Investor Relations, London

       

Julia Stone     Telephone: +44 (0)7495470187

Kelsey Traynor

investorrelations@petradiamonds.com

 

 

Notes:

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. Q: quarter 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. period: the fourth quarter of FY 2024
 

 

ABOUT PETRA DIAMONDS

 

 

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 and Finsch Mines).

 

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 2026, are listed on EuroNext
Dublin (Irish Stock Exchange). For more information,
visit www.petradiamonds.com.

 

 

IMPORTANT INFORMATION

 

This announcement contains statements about Petra that are or may be forward
looking statements. All statements other than statements of historical facts
included in this announcement may be forward looking statements. Without
limitation, any statements preceded or followed by or that include the words
"targets", "goals", "should", "would", "could", "continue", "plans",
"believes", "expects", "aims", "intends", "will", "may", "anticipates",
"estimates", "hopes", "projects" or words or terms of similar substance or the
negative thereof, are forward looking statements.

Such forward looking statements involve risks and uncertainties that could
significantly affect expected results and are based on certain key
assumptions. Many factors could cause actual results to differ materially from
those projected or implied in any forward looking statements. In light of
these known and unknown risks, uncertainties, contingencies, estimates and
assumptions, the events in the forward-looking statements may not occur or may
cause actual results, performance or achievements to differ materially from
those expressed by or implied from such forward-looking statements, whether as
a result of new information, future events or otherwise. Due to such
uncertainties and risks, readers are cautioned not to place undue reliance on
such forward looking statements, which speak only as of the date hereof. Petra
disclaims any obligation to update any forward looking or other statements
contained herein, except as required by applicable law or regulation. Past
performance of the Company cannot be relied on as a guide to, or a guarantee
or an indication of, future performance. No statement in the announcement is
intended to be, nor should be construed as, a profit forecast.

 

Corporate and financial summary as at 30 June 2025

 

                                          Unit         As at 30 June 2025  As at 31 March 2025  As at 31 December 2024  As at 30 September 2024  As at 30     
                                                                                                                                                  June 2024   
 Total cash at bank 1                     US$m         49                  36                   52                      47                       47           
 Diamond debtors                          US$m         12                  2                    -                       -                        31           
 Diamond inventories 2                    US$m Carats  30 328,689          31 397,182           27 346,037              84 826,857               28 259,755   
 2026 Loan Notes 3                        US$m         226                 231                  225                     245                      246          
 Bank loans and borrowings 4              US$m         99                  66                   43                      76                       25           
 Consolidated Net Debt 5                  US$m         264                 258                  215                     273                      193          
 Bank facilities undrawn and available 4  US$m         -                   30                   50                      26                       72           

 

Note:  The following exchange rates have been used for this announcement:
average for FY 2025 US$1: ZAR18.15 (FY 2024: US$1: ZAR18.71); closing rate as
at 30 June 2025 US$1: ZAR17.75 (31 March 2025: US$1: ZAR18.30; 31 December
2024: US$1: ZAR18.85; and 30 June 2024: US$1: ZAR18.19).

 

Notes:
1. The Group’s cash balances comprise unrestricted balances of US$31
million, and restricted balances of US$18 million.
2. Recorded at the lower of cost and net realisable value.
3. The 2026 Loan Notes, originally issued following the capital restructuring
(the “Restructuring”) completed during March 2021, have a carrying value
of US$226 million which represents the outstanding principal amount of US$186
million plus US$42 million of capitalised accrued interest (PIK) and is net of
unamortised transaction costs capitalised of US$2 million. 
4. Bank loans and borrowings represent the Group’s ZAR1.75 billion (US$99
million) revolving credit facility. As at 30 June 2025, the whole facility was
drawn. 
5. Consolidated Net Debt is bank loans and borrowings plus loan notes, less
cash and diamond debtors.
 


Mine-by-mine tables:

 

 

Cullinan Mine – South Africa

 

                          Unit        Three months                             Twelve months                
                          Q4 FY 2025             Q3 FY 2025  Var.  Q4 FY 2024  FY 2025    FY 2024    Var.   
 Sales                                                                                                      
 Revenue                  US$m        35         23          +52%  61          135        189        -29%   
 Diamonds sold            Carats      481,690    294,592     +64%  534,767     1,416,351  1,633,456  -13%   
 Average price per carat  US$         73         77          -5%   113         96         116        -17%   
                                                                                                            
 ROM Production                                                                                             
 Tonnes treated           Tonnes      1,094,268  1,000,455   +9%   1,117,591   4,292,080  4,497,444  -5%    
 Diamonds produced        Carats      333,393    294,220     +13%  299,301     1,272,818  1,268,402  -      
 Grade 1                  Cpht        30.5       29.4        +4%   26.8        29.7       28.2       +5%    
                                                                                                            
 Tailings Production                                                                                        
 Tonnes treated           Tonnes      74,249     124,703     -40%  107,203     407,579    369,546    +10%   
 Diamonds produced        Carats      20,270     45,920      -56%  33,526      180,190    136,389    +32%   
 Grade 1                  Cpht        27.3       36.8        -26%  31.3        44.2       36.9       +20%   
                                                                                                            
 Total Production                                                                                           
 Tonnes treated           Tonnes      1,168,517  1,125,158   +4%   1,224,795   4,699,659  4,866,990  -3%    
 Diamonds produced        Carats      353,663    340,140     +4%   332,828     1,453,008  1,404,791  +3%    

 

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                           Twelve months                
                          Q4 FY 2025           Q3 FY 2025  Var.  Q4 FY 2024  FY 2025    FY 2024    Var.   
 Sales                                                                                                    
 Revenue                  US$m        14       19          -26%  37          70         120        -42%   
 Diamonds sold            Carats      206,180  264,059     -22%  400,322     943,554    1,227,409  -23%   
 Average price per carat  US$         70       72          -3%   93          74         98         -25%   
                                                                                                          
 ROM Production                                                                                           
 Tonnes treated           Tonnes      597,495  585,383     +2%   446,012     2,192,994  2,096,730  +5%    
 Diamonds produced        Carats      265,712  269,656     -1%   222,387     975,828    1,001,636  -3%    
 Grade                    Cpht        44.5     46.1        -3%   49.9        44.5       47.8       -7%    
                                                                                                          

 

 

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