Petra to Refinance as Sales Slide by a Third
August 11, 25
(IDEX Online) - Petra Diamonds has announced plans for a major refinancing program - together with a 33 per cent slide in revenue for FY2025.
The UK-based miner, which has recently sold off two of its four diamond mines, is facing substantial financial and operational challenges.
It is proposing an extension of senior secured bank debt and notes due early next year to 2029 and 2030 respectively, together with a $25m rights issue.
The moves are designed to preserve cash, extend debt repayment timelines, and ensure Petra can continue investing in its two remaining core mines - Cullinan and Finsch, both in South Africa.
Petra's latest sales results, published on the same day (8 August) as its refinancing package, show some positive momentum in the market with like-for-like rough diamond prices from its latest tender, but revenue for Q4 was down 49 per cent year-on-year to $50m.
Revenue for FY2025 was $206m, down 33 per cent year-on-year from $309m and net debt increased to $264m.
"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," the company said in its Q4 and FY 2025 Operating Update.
Meanwhile, in its refinancing proposal Petra said: "Petra has, over the past 18 months, been focused on an internal restructuring that has resulted in a simpler and more streamlined business and operating model.
"This has included the sale of the Koffiefontein and Williamson mines, multiple labour restructuring initiatives and an optimisation and smoothing of the group's capital development profiles."
Pic courtesy Petra of Cullinan mine.