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Petra Diamonds (GB:PDL)
:PDL
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Petra Diamonds
(LSE:PDL)
49Neutral
Petra Diamonds (PDL) vs. S&P 500 (SPY)
Market Cap
£52.63M
Dividend YieldN/A
Average Volume (3M)483.31K
Price to Earnings (P/E)―
Beta (1Y)0.36
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees2,870
SectorBasic Materials
Sector Strength58
IndustryOther Precious Metals
Share Statistics
EPS (TTM)-0.38
Shares Outstanding194,201,780
10 Day Avg. Volume256,882
30 Day Avg. Volume483,311
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.20
Price to Cash Flow (P/CF)1.90
P/FCF Ratio2.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
29.50pPrice Target Upside8.86% Upside
Rating ConsensusHold
Number of Analyst Covering2
Petra Diamonds Business Overview & Revenue Model
Company DescriptionPetra Diamonds Limited engages in the mining, processing, sorting, and sale of rough diamonds in South Africa. It holds interest in three underground producing mines, including Cullinan, Finsch, and Koffiefontein mines located in South Africa. The company also provides treasury, beneficiation, and other services. Petra Diamonds Limited was incorporated in 1997 and is based in London, the United Kingdom.
How the Company Makes MoneyPetra Diamonds makes money by extracting and selling rough diamonds from its mining operations in Africa. The company's primary revenue stream comes from the sale of these diamonds to wholesalers, diamond manufacturers, and retailers worldwide. Petra Diamonds operates several key mines, including the Cullinan, Finsch, and Koffiefontein mines, each contributing to its overall diamond production. Additionally, the company may engage in joint ventures or partnerships with other mining entities to enhance its production capabilities and expand its market reach. The company also focuses on optimizing its operational efficiencies and cost management to maximize profitability from its diamond sales.
Petra Diamonds Financial Statement Overview
Summary
Petra Diamonds faces financial challenges, with declining revenue and profitability, high leverage, and negative cash flows. While there's some improvement in revenue and cash flow generation, substantial operational and financial restructuring is needed for sustainable growth.Income Statement
Petra Diamonds has faced declining revenues and profitability over the recent periods. The revenue growth rate from 2023 to 2024 is 12.8%, showing some recovery after a significant drop from 2022. However, consistently negative net profit margins and EBIT margins indicate ongoing operational challenges.40
Negative
Balance Sheet
The company's debt-to-equity ratio has improved over time but remains relatively high at 1.25, indicating significant leverage. The equity ratio stands at 31.6%, showing a moderate proportion of equity in the asset base. The return on equity is negative, reflecting recent losses.45
Neutral
Cash Flow
Despite negative free cash flow growth, operating cash flow remains positive, suggesting some stability in cash generation from operations. The operating cash flow to net income ratio is strong, highlighting better cash management versus accounting losses.50
Neutral
| Breakdown | ||||
| Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 367.00M | 325.30M | 585.20M | 402.30M | 295.80M | Gross Profit |
| -27.00M | 26.90M | 192.90M | 64.20M | -13.20M | EBIT |
| -37.00M | -10.80M | 158.50M | 132.60M | -101.40M | EBITDA |
| 3.00M | 84.00M | 277.10M | 209.40M | -17.90M | Net Income Common Stockholders |
| -86.00M | -105.30M | 69.00M | 187.10M | -223.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 42.00M | 61.80M | 271.90M | 147.70M | 53.60M | Total Assets |
| 772.00M | 860.80M | 1.11B | 1.08B | 1.04B | Total Debt |
| 304.00M | 276.30M | 388.60M | 431.30M | 882.30M | Net Debt |
| 276.00M | 214.50M | 116.70M | 283.60M | 828.70M | Total Liabilities |
| 555.00M | 544.00M | 632.40M | 638.30M | 1.03B | Stockholders Equity |
| 244.00M | 320.70M | 473.80M | 450.80M | 30.50M |
| Cash Flow | Free Cash Flow | |||
| -42.00M | -72.40M | 228.50M | 107.60M | -47.40M | Operating Cash Flow |
| 42.00M | 40.60M | 282.50M | 127.00M | -8.10M | Investing Cash Flow |
| -93.00M | -110.90M | -52.90M | -25.40M | -51.00M | Financing Cash Flow |
| 12.00M | -150.70M | -98.90M | -8.00M | 52.40M |
Petra Diamonds Technical Analysis
Negative
27.10
Price Trends
28.00
Negative
28.86
Negative
30.44
Negative
Market Momentum
-0.45
Positive
46.52
Neutral
23.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PDL, the sentiment is Negative. The current price of 27.1 is below the 20-day moving average (MA) of 28.47, below the 50-day MA of 28.00, and below the 200-day MA of 30.44, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 46.52 is Neutral, neither overbought nor oversold. The STOCH value of 23.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:PDL.
Petra Diamonds Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | £1.54B | 20.35 | 15.70% | ― | 31.84% | ― | |
74 Outperform | $7.30B | 66.20 | 3.70% | 0.82% | 25.76% | -41.10% | |
71 Outperform | £11.06M | 4.90 | 2.04% | ― | 6.94% | ― | |
49 Neutral | £52.63M | ― | -35.25% | ― | ― | ― | |
47 Neutral | $2.53B | -3.19 | -22.23% | 3.49% | 4.01% | -27.90% |
* Basic Materials Sector Average
Performance Comparison
GB:PDL
Petra Diamonds
27.10
-15.90
-36.98%
GB:FRES
FRESNILLO
1,020.00
430.88
73.14%
GB:GEMD
Gem Diamonds
7.56
-1.22
-13.90%
GB:HOC
Hochschild Mining
303.60
156.80
106.81%
Petra Diamonds Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: 12.92% | Next Earnings Date: Sep 16, 2025
Earnings Call Sentiment Negative
The earnings call highlighted some improvements in safety and stable average prices, but was overshadowed by a significant decline in revenue, production challenges at Finsch, market weakness, and increased net debt. Concerns about refinancing and covenant breaches further contributed to a negative sentiment.Highlights
Improvement in Safety Metrics
Safety improved in the second quarter with lost time injuries falling from 4 to 2 and the lost time injury frequency rate decreasing from 0.28 to 0.16.
Stable Average Prices Despite Market Weakness
Average price per carat received of $112 for the first half of FY ‘25 remained broadly stable over recent quarters, partially offsetting the overall weaker market.
Successful Restructuring Efforts
Initiatives under work streams 1 to 3 of the restructuring plan are being implemented, including optimization of the cost base and organizational structures.
Lowlights
Decline in Revenue
Revenue for the first half of FY ‘25 was $146 million, down from $188 million in the first half of FY ‘24.
Finsch Production Challenges
Finsch saw a reduction in tons treated and carats produced compared to H1 FY 2024, largely due to the transition from continuous operations to a two-shift configuration.
Market Weakness and Pricing Adjustments
Diamond price weakness persisted, leading to a revision of FY ‘25 pricing assumptions for Finsch from $80-$90 per carat down to $70-$80 per carat.
Increased Net Debt
Consolidated net debt closed at $225 million as of 31 December 2024, higher than $212 million at the end of December 2023.
Covenant and Refinancing Concerns
Concerns about potential covenant breaches and the need for refinancing of 2026 loan notes due to protracted weak market conditions.
Company Guidance
In the recent call discussing Petra's Half Year Operating Update, several key metrics and guidance points were highlighted. The company reported a decline in revenue to $146 million for the first half of FY '25 compared to $188 million in the same period of FY '24. This decrease was partly attributed to the prior year's benefit from deferred carat sales. The average price per carat remained stable at $112, despite market weaknesses. Safety improvements were noted, with a reduction in lost time injuries from 4 to 2 and a frequency rate decrease from 0.28 to 0.16. Production slightly declined by 2%, from 1.43 million carats to 1.4 million carats year-over-year. Petra revised pricing assumptions for Finsch from $80-$90 per carat down to $70-$80 per carat due to market conditions. Consolidated net debt was reported at $225 million by the end of December 2024, and the company remains focused on achieving net cash generation by addressing cost base and organizational restructuring, including a $44 million cost rebase in FY '25. The company aims to meet its FY '25 production guidance of 2.8 to 3.1 million carats.Petra Diamonds Corporate Events
Business Operations and Strategy
Petra Diamonds Director Increases Stake, Signaling Confidence in Strategic Focus
Positive
Feb 27, 2025
Petra Diamonds announced that José Manuel Vargas, a Non-Executive Director, has purchased 343,139 ordinary shares, increasing his stake to approximately 11.56% of the company’s issued share capital. This transaction reflects confidence in Petra’s strategic focus on value production and its potential for long-term sustainable operations, which may positively impact stakeholder value and the company’s market positioning.
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Petra Diamonds Reports Cost Reductions and Strategic Sales Amidst Market Challenges
Neutral
Feb 17, 2025
Petra Diamonds reported interim results for H1 FY 2025, highlighting a successful implementation of cost reduction measures despite a challenging diamond market. The company achieved a 19% reduction in mining and processing costs, and a 32% decrease in capital expenditure, leading to improved cash flow from operations. However, lower revenue impacted EBITDA and led to covenant breaches, which were waived by the lender. The restructuring plan, including the sale of Koffiefontein and an agreement to sell Williamson, aims to streamline operations and enhance resilience against market fluctuations.
Petra Diamonds Sees Change in Voting Rights Holdings
Jan 16, 2025
Petra Diamonds Limited has been notified of a change in the voting rights of its shares, following an acquisition or disposal by Vontobel Hol. The notification reveals that the voting rights held by the notifying party have decreased from 6.146748% to 4.675610%. This reduction in voting rights may impact the company’s governance and influence the decisions made by its stakeholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.