London-listed Petra Diamonds has reported revenue of $100-million for the six months ended December 31, 2025, compared with the revenue of $115-million reported for the six months ended December 2024.

The company attributed the lower revenue to the timing of the December 2025 and January tenders.

Diamonds on hand as at December 31, 2025, were 608 217 ct, worth $46-million, compared with the 385 878 ct, valued at $40-million, on hand, at December 31, 2024.

The average realised price for the six months under review was $104/ct, in line with pricing in the prior comparable period, reflecting the positive impact of product mix over the period, offsetting the overall weaker diamond pricing environment.

Adjusted mining and processing costs are 27% lower at $72-million, owing to diamond inventory movements of $24-million, reductions in on-mine cash costs of $7-million, and partly offset by the impact of the weaker dollar on the cost base of $3-million and inflation of $5-million.

The company explains that adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of $26-million is $11-million higher than the $15-million reported for the first half of the prior financial year, largely owing to the $26-million reduction in adjusted mining and processing costs, partly offset by $15-million lower revenue and $2-million in other costs.

The company also reports a basic loss a share from continuing operations of $0.70 and $0.10 on an adjusted basis after accounting for non-controlling interests.

Capital expenditure (capex) was up 13% to $34-million, with guidance weighted towards the second half of the current financial year.

Operational free cash outflow was $6-million, compared with a $16-million inflow in the first half of prior financial year, largely owing to a non-recurring release of diamond debtors during the period, a build-up of diamond inventory in the first half of financial year 2026, resulting in lower revenues, and lower operating cost and capex. 

In November 2025, Petra announced the completion of the company’s refinancing, comprising the extension of the company’s senior secured bank debt to December 2029, the extension of the maturity date of the company’s loan notes to 2030, and a successful rights issue, raising about $25-million at 16.5p a share to be used for general working capital purposes, as required by the group.

Total cash cost of refinancing the debt facilities and the costs related to the rights issue was about $8-million.

At period-end, Petra notes that an amount of $11-million remained available for drawdown on the revolving credit facility (RCF), with repayments of $17-million and drawdowns of $6-million made during the first half of financial year 2026 relating to working capital needs.

Consolidated net debt increased to $284-million as at December 31, 2025.

Consolidated net debt includes fair value adjustments on the 2030 loan notes of $20-million, less costs capitalised to the senior secured debt facility of $3-million.

The total nominal value of net debt is $269-million.

The group’s unrestricted cash balances were $36-million.

“The first half of financial year 2026 signalled a pivotal period for the group, with the successful refinancing and extension of our debt facilities providing greater stability to the group’s capital structure.

“We were also pleased with the continued improvement to our product mix throughout the period, and especially excited by the recovery of a 41.82 ct Type IIb blue stone at our Cullinan mine in late December 2025, which demonstrates the quality of our orebodies,” say joint CEOs Vivek Gadodia and Juan Kemp.

Gadodia and Kemp note that the company’s financial results for the period reflect the company’s discipline in managing costs and capital, as well as the anticipated improvement in product mix, especially at Cullinan mine, offset by the continuing weaker market and the strength of the rand.

Commenting on the diamond market, Gadodia and Kemp say it remained subdued during the period under review, with the smaller size diamonds coming under further strain during the second quarter, with average like-for-like prices down 20% from the first quarter to the second quarter of the current financial year.

This was partially offset by the improved product mix.

They note that the significant appreciation of the rand against the dollar is another major headwind facing the business.

“While we partly mitigated the stronger rand through hedges in the first half of financial year 2026, the continued strength of the rand going forward remains a risk to the business.”

The CEOs note that management continues to enforce strict cost control, assessing capital deferral or alternate capital sequencing opportunities and ensuring it mines the areas that have the highest contained revenue to mitigate for both the weaker market in the smalls as well as the stronger rand.

“Looking ahead, we remain focused on consistent production, disciplined cost and working capital optimisation, and the effective execution of our capital programme.”