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Q3 FY 2026 Operating Update
Petra Diamonds reported Q3 FY 2026 sales of US$68 million, an increase from US$49 million in Q2 FY 2026, boosted by the sale of a significant blue diamond, though overall pricing remains under pressure, particularly for smaller stones. The company experienced a strengthening rand, averaging ZAR16.34:US$1, and a rise in net debt to US$298 million as of March 31, 2026, with its revolving credit facility fully drawn. In response, Petra is initiating cost and capital expenditure reductions, prioritizing high-value areas at Cullinan Mine and suspending full-year carat production guidance for that operation due to a strategic shift towards higher-value, lower-grade stones. Additionally, the company is assessing further capital expenditure suspension at Finsch mine. Disclaimer*
About this update from Petra Diamonds Limited
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...
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