Weak Market and Product Mix Dent Petra Revenue

Petra Diamonds’ sales fell 24% year on year in the fourth fiscal quarter, as the miner offered lower-value goods and market conditions remained weak.

Revenue declined to $38 million for the three months that ended June 30, the company said Wednesday. Revenue also fell 44% from the previous quarter, during which the miner sold a blue diamond weighing 41.82 carats. Sales volume slipped 20% year on year to 547,220 carats, while the average price dipped 5% to $69 per carat.

Output decreased 22% year on year and 20% from the third quarter to 484,730 carats, as the company suspended production at its Finsch mine in South Africa, which it has put into business rescue amid the weak market for small stones.

“Against a backdrop of ongoing global geopolitical tensions, a structural change in the smaller-sized diamond price segment, and the continued strength of the [South African] rand, the fourth quarter saw a shift in production,” said Petra CEO Vivek Gadodia.

For the full year, revenue was flat at $206 million, despite a 3% decrease in sales volume to 2.3 million carats. A rise in the average price to $90 per carat for fiscal 2026, compared to $87 per carat the prior year, offset the decline in sales volume. The company moved away from smaller goods and sourced ore from the Cullinan mine’s C-Cut region, which yields a higher proportion of large and fancy-colored diamonds, the miner explained.

“Going forward, we will continue the optimization of the appropriate capital profile for the Cullinan mine, ensuring that we continue to open additional production areas in the C-Cut,” Gadodia stated.

Petra’s debt grew to $322 million as of June 30, versus $298 million on March 31. The increase was largely due to losses sustained at Finsch. Cash on hand remains “tight” as a result of the weaker rough prices in the fourth quarter, Gadodia added.

The company declined to provide guidance for fiscal 2027.

Image: The new processing plant at the Cullinan mine. (Petra Diamonds)