Troubled Petra Faces Sale of Company or Assets

(IDEX Online) - Petra Diamonds today (October 5) said it had appointed a financial adviser to manage a strategic review - a possible precursor to the sale of its Cullinan mine and other assets, or of the entire company.

The London-listed miner, which once operated a portfolio of four former De Beers mines, now has just one, the iconic Cullinan in South Africa.

Last Thursday (October 1) Petra said its board had decided to undertake a strategic review after consulting key stakeholders, to consider "all potential paths to address liquidity needs of the business, in the near term, including but not limited to a potential sales process in relation to the company's assets."

Today, it took the next step by appointing Questco Corporate Advisory, a South African corporate-finance and advisory firm, to manage that review.

Questco is now actively inviting potential investors or buyers to express an interest in participating in the process.

Petra's financial position explains the urgency. Its net debt rose to $322 million at June 30, from $298 million three months earlier. The company has also secured an additional $300 million working-capital facility, while its analyst guidance for FY2026 to FY2030 is currently suspended.

Petra once operated Finsch and Koffiefontein in South Africa and Williamson in Tanzania, in addition to Cullinan.

It sold Koffiefontein to Stargems Group in October 2024, sold Williamson to Pink Diamonds Investments, an affiliate of Tanzanian mining contractor Taifa, in May 2025, and put Finsch into business rescue in May this year after the predominantly small diamonds it produced became uneconomic.

Creditors subsequently approved a plan to sell the mine after failing to find a viable way to restart operations.

Cullinan, now Petra's sole operating mine, accounted for 66% of its mine revenue in FY2025.

Petra says production at Cullinan, famous as the home of the 3,106-carat Cullinan Diamond, is currently concentrated on the C-Cut, which produces a higher proportion of large and fancy-color diamonds.

It expects the mine to remain in production into the late 2040s, with further development projects planned to increase production and improve its product mix.

That could make Cullinan potentially attractive to a buyer, despite Petra's financial difficulties. But Petra cautions that a sale is not inevitable. "There is no certainty as to the outcome of the Strategic Review," it said.

Pic shows Cullinan mine, South Africa.