Business
Petra Diamonds Limited - Business Update
Petra Diamonds Limited - Business
About this update from Petra Diamonds Limited
[{"type":"text","content":" \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n\n[image]\n\n29 May 2026 LSE: PDL\n\nPetra Diamonds Limited\n\n(the \"Company\" or \"Business\")\n\nBusiness Update\n\nVivek Gadodia, Chief Executive Officer of Petra Diamonds, commented:\n\n\"We are faced with an unprecedentedly weak diamond market, due to global macro\nfactors as well as the recent Middle East tensions. In particular, we continue\nto see deterioration in the value of the smaller sized diamonds, where we do not\ncurrently expect a material near-term recovery. Our tender results for April\n2026 and May 2026 have yielded an average price for Cullinan Mine of c. $81/ct\n(compared to $109/ct in Q3), while Finsch averaged c. $47/ct (compared to $56/ct\nduring Q3).\n\nIn addition, the sustained stronger Rand has had a significant impact, with no\nindication that this is going to change in the near future.\n\nIn order to mitigate the impacts of the weaker market and the stronger Rand, the\nCompany has been implementing immediate cash preservation measures, which\ninclude stopping capital expenditure at Finsch, refocusing effort to increase\nproduction in the high value areas in the Cullinan Mine, and piloting additional\nproductivity enhancing levers at the Cullinan Mine.\n\nAs has been indicated in previous announcements, the Company has been assessing\nthe business in light of the ongoing headwinds described above, with specific\nfocus on the assessment of the viability of the Finsch Mine due to its product\nmix being predominantly the smaller sized diamonds, and also not having the\nbenefit of high value Type II stones that the Cullinan Mine produces.\n\nBased on these assessments, it is with regret that the Company today announces\ncommencing a business rescue process at Finsch in accordance with the South\nAfrican Companies Act. We will now look to appoint a Business Rescue\nPractitioner and will keep the market updated on any material developments.\n\nThis is being done in order to protect the overall Business, which we believe\nhas a viable future given the Cullinan Mine's unique product mix, which has thus\nfar allowed it to mitigate both the weaker market and the stronger Rand. To\nensure a more resilient Business going forward which is able to withstand a\nweaker for longer market and in light of the expected stronger Rand and the\nstructural decline in pric...