Petra Diamonds Ltd (GB:PDL)
LSE:PDL
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Petra Diamonds
(LSE:PDL)
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Rating:38Underperform
Price Target:
6.00 p
▼(-65.81% Downside)
Action:Reiterated
Date:06/14/26
The score is driven primarily by very weak financial performance (sharp revenue decline, negative margins, high leverage, and negative free cash flow). Technicals also weigh heavily, with price far below key moving averages and bearish momentum indicators. Valuation provides limited offset because the negative P/E reflects losses and dividend yield data is unavailable.
Positive Factors
Stable recurring revenue model plus high-value windfalls
Petra's core cash generation is rooted in recurring sales of run-of-mine and sorted rough diamonds, providing a baseline revenue stream. Periodic recovery of exceptional large stones can materially boost revenue and margins, offering asymmetric upside that cushions cyclical downturns over the medium term.
Negative Factors
Severe revenue decline
A near 46% revenue drop signals weakened production, realizations, or both, eroding scale and fixed-cost coverage. Persistent revenue contraction impairs reinvestment, undermines bargaining power with buyers and suppliers, and prolongs recovery timelines because mining cashflows rely on stable volumes and prices to restore profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable recurring revenue model plus high-value windfalls
Petra's core cash generation is rooted in recurring sales of run-of-mine and sorted rough diamonds, providing a baseline revenue stream. Periodic recovery of exceptional large stones can materially boost revenue and margins, offering asymmetric upside that cushions cyclical downturns over the medium term.
Read all positive factors
Petra Diamonds (PDL) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£21.80M
Dividend YieldN/A
Average Volume (3M)63.71K
Price to Earnings (P/E)―
Beta (1Y)0.45
Revenue Growth-45.10%
EPS Growth2.30%
CountryUK
Employees2,870
SectorBasic Materials
Sector Strength58
IndustryOther Precious Metals
Share Statistics
EPS (TTM)-0.49
Shares Outstanding335,420,800
10 Day Avg. Volume60,204
30 Day Avg. Volume63,713
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)0.38
Price to Sales (P/S)0.19
P/FCF Ratio-0.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.09
Revenue Forecast (FY)£275.30M
Petra Diamonds Business Overview & Revenue Model
Company Description
Operating predominantly in South Africa, Petra Diamonds Limited is involved in the complete cycle of rough diamond production, encompassing mining, processing, sorting, and sales. The company holds interests in three actively producing subterranea...
How the Company Makes Money
Petra Diamonds makes money primarily by producing and selling rough diamonds. Its revenue model is volume-and-price driven: (1) it mines diamond-bearing ore from its operations, (2) processes the ore through treatment plants to recover rough diamo...
Petra Diamonds Earnings Call Summary
Earnings Call Date:Feb 18, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Sep 15, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment. While there are improvements in safety performance and stable product pricing, significant challenges remain, including declining revenue, increased net debt, and persistent market weakness impacting pricing. Operational improvements at Finsch are promising, but concerns over covenant breaches and refinancing add pressure. Positive market signs from the U.S. and India provide some optimism.Positive Updates
Improved Safety Performance
Safety improved in the second quarter with lost time injuries falling from 4 to 2 and the lost time injury frequency rate reducing from 0.28 to 0.16.
Negative Updates
Revenue Decline
Revenue for the first half of FY '25 was $146 million, down from $188 million in the same period the previous year.
Read all updates
Q2-2025 Updates
Positive
Negative
Improved Safety Performance
Safety improved in the second quarter with lost time injuries falling from 4 to 2 and the lost time injury frequency rate reducing from 0.28 to 0.16.
Read all positive updates
Company Guidance
During the call, Petra provided guidance that highlighted several key metrics. Safety performance improved in the second quarter with lost time injuries decreasing from 4 to 2, and the lost time injury frequency rate fell from 0.28 to 0.16. Total production saw a slight 2% decrease from 1.43 million carats to 1.4 million carats in the first half of fiscal year 2025. Average diamond prices remained stable at $112 per carat, despite market weaknesses. Revenue for the first half of FY '25 was $146 million, down from $188 million in the first half of FY '24. Consolidated net debt closed at $225 million by December 2024, a decrease from $285 million at the end of the first quarter of FY '25. Petra's restructuring efforts aim for net cash generation by reducing costs by $44 million, with production guidance set between 2.8 million and 3.1 million carats for FY '25.Petra Diamonds Financial Statement Overview
Summary
Income Statement
30
Negative
Balance Sheet
40
Negative
Cash Flow
25
Negative
| Breakdown | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 219.44M | 367.00M | 325.00M | 563.70M | 243.30M |
| Gross Profit | -57.24M | -27.00M | 28.00M | 206.30M | 4.00M |
| EBITDA | -78.45M | 3.00M | 84.00M | 277.10M | -63.60M |
| Net Income | -91.17M | -86.00M | -105.00M | 69.00M | -190.00M |
Balance Sheet | |||||
| Total Assets | 539.42M | 772.00M | 861.00M | 1.11B | 1.04B |
| Cash, Cash Equivalents and Short-Term Investments | 51.04M | 42.00M | 44.00M | 271.90M | 53.60M |
| Total Debt | 327.26M | 304.00M | 276.00M | 388.60M | 882.30M |
| Total Liabilities | 446.35M | 555.00M | 544.00M | 632.40M | 1.03B |
| Stockholders Equity | 110.09M | 244.00M | 321.00M | 473.80M | 30.50M |
Cash Flow | |||||
| Free Cash Flow | -45.58M | -42.00M | -70.00M | 228.50M | -47.40M |
| Operating Cash Flow | 34.98M | 42.00M | 43.00M | 282.50M | -8.10M |
| Investing Cash Flow | -71.03M | -93.00M | -107.00M | -52.90M | -51.00M |
| Financing Cash Flow | 49.82M | 12.00M | -155.00M | -101.40M | 52.40M |
Petra Diamonds Technical Analysis
Negative
17.55
Price Trends
14.30
Negative
15.68
Negative
16.73
Negative
Market Momentum
-2.35
Positive
18.58
Positive
10.53
Positive
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 17.55 is above the 20-day moving average (MA) of 9.93, above the 50-day MA of 14.30, and above the 200-day MA of 16.73, indicating a bearish trend. The MACD of -2.35 indicates Positive momentum. The RSI at 18.58 is Positive, neither overbought nor oversold. The STOCH value of 10.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:PDL.
Petra Diamonds Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
50 Neutral | £2.47M | -2.35 | -148.58% | ― | ― | 67.19% | |
47 Neutral | £1.57M | -5.25 | -3.17% | ― | ― | ― | |
45 Neutral | £5.19M | -0.07 | -7.68% | ― | -38.20% | -3548.75% | |
38 Underperform | £21.80M | -0.25 | -186.54% | ― | -45.10% | 2.30% |
* Basic Materials Sector Average
GB:PDL
Petra Diamonds
6.50
-8.33
-56.17%
GB:GEMD
Gem Diamonds
3.71
-3.43
-48.04%
GB:KDR
Karelian Diamond Resources
0.80
-0.05
-5.88%
GB:SEFA
Shefa Gems Ltd
0.10
-0.02
-18.40%
GB:GEMR
URA Holdings PLC
0.40
0.23
135.29%
Petra Diamonds Corporate Events
Business Operations and StrategyLegal ProceedingsPrivate Placements and Financing
Petra Diamonds Halts Finsch Output as Business Rescue Practitioners Take Charge
Negative
Jun 10, 2026
Petra Diamonds has appointed Daniel Theodorus Van Jaarsveld and Luke Bernard Saffy as Business Rescue Practitioners for the Finsch Diamond Mine, which they now control while drafting a mine-specific business plan for creditor approval. In agreemen...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresLegal Proceedings
Petra Diamonds Puts Finsch Mine into Business Rescue as Market Slump Forces Restructuring
Negative
May 29, 2026
Petra Diamonds has moved to place its Finsch Mine into business rescue after a sharp deterioration in prices for smaller rough diamonds and the impact of a stronger South African rand, which have pushed the operation into sustained underperformanc...
Business Operations and StrategyFinancial Disclosures
Petra Diamonds Tightens Spending as Weak Prices and Strong Rand Lift Debt
Negative
May 8, 2026
Petra Diamonds reported steady third-quarter operations, with Finsch largely on plan while Cullinan worked to recover from earlier weather-related disruptions. Revenue rose to $68 million, boosted by the sale of a 41.82-carat Type IIb blue diamond...
Business Operations and StrategyFinancial Disclosures
Petra Diamonds lifts Q3 sales, secures value-sharing deal on rare blue stone
Neutral
Apr 1, 2026
Petra Diamonds reported Q3 FY 2026 rough diamond sales of 781,797 carats, generating revenue of $68 million versus $49 million in Q2, as higher volumes offset an 11% decline in average pricing to $87 per carat amid a 15% like-for-like price reduct...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.