Petra Diamonds (PDL) AI Stock Analysis

• Market Cap: £39.71M
• Dividend Yield: N/A
• Average Volume (3M): 438.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 2,870
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Other Precious Metals
• EPS (TTM): -0.10
• Shares Outstanding: 194,201,780
• 10 Day Avg. Volume: 408,103
• 30 Day Avg. Volume: 438,159
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £11.00
• Price Target Upside: -46.21% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 40 Neutral
• Price Target: 11.00p ▼(-46.21% Downside)

Petra Diamonds is facing substantial financial and operational challenges. The significant decline in revenue, high leverage, and weak market conditions are the primary concerns. Negative sentiment from the earnings call and technical indicators pointing to bearish momentum further contribute to the low score.

Petra Diamonds Business Overview & Revenue Model

Company Description

Petra 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 Money

Petra Diamonds generates revenue primarily through the mining, processing, and sale of rough diamonds. The company operates several mines, including the Cullinan, Finsch, Koffiefontein, and Williamson mines, which are rich in diamond reserves. Revenue is earned by extracting diamonds from these mines and selling them through tenders to a range of customers, including traders, manufacturers, and retailers. Additionally, Petra Diamonds may engage in joint ventures or partnerships that can enhance its operational capabilities and market reach. The company's earnings are significantly influenced by global diamond market prices, production levels, and operational efficiencies. Petra Diamonds also focuses on optimizing its mining processes and cost management to improve profitability.

Petra Diamonds Financial Statement Overview

Summary

Petra Diamonds has faced financial challenges with declining revenues and profitability, coupled with high leverage and negative cash flows. Despite some improvement in revenue and cash flow generation, substantial 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.

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.

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.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	367.00M	325.00M	563.70M	406.90M	243.30M
Gross Profit	-27.00M	28.00M	206.30M	49.90M	4.00M
EBITDA	3.00M	84.00M	277.10M	364.90M	-63.60M
Net Income	-86.00M	-105.00M	69.00M	187.10M	-190.00M
Balance Sheet
Total Assets	772.00M	861.00M	1.11B	1.08B	1.04B
Cash, Cash Equivalents and Short-Term Investments	42.00M	44.00M	271.90M	147.70M	53.60M
Total Debt	304.00M	276.00M	388.60M	431.30M	882.30M
Total Liabilities	555.00M	544.00M	632.40M	638.30M	1.03B
Stockholders Equity	244.00M	321.00M	473.80M	450.80M	30.50M
Cash Flow
Free Cash Flow	-42.00M	-70.00M	228.50M	107.60M	-47.40M
Operating Cash Flow	42.00M	43.00M	282.50M	127.00M	-8.10M
Investing Cash Flow	-93.00M	-107.00M	-52.90M	-25.40M	-51.00M
Financing Cash Flow	12.00M	-155.00M	-101.40M	-8.00M	52.40M

Petra Diamonds Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PDL, the sentiment is Positive. The current price of 20.45 is above the 20-day moving average (MA) of 17.24, above the 50-day MA of 14.85, and below the 200-day MA of 24.33, indicating a neutral trend. The MACD of 2.03 indicates Negative momentum. The RSI at 69.89 is Neutral, neither overbought nor oversold. The STOCH value of 49.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:PDL.

Petra Diamonds Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GEMD	74 Outperform	£9.64M	4.31	2.04%	―	6.94%	―
Sector *	61 Neutral	$10.31B	6.16	0.76%	2.94%	3.30%	-36.34%
BOD	46 Neutral	£3.29M	―		―	―	―
KDR	41 Neutral	£1.08M	―	-2.25%	―	―	33.33%
PDL	40 Neutral	£39.71M	―	-35.25%	―	―	―

Petra Diamonds Corporate Events

Petra Diamonds Completes Sale of Williamson Diamonds Interest

Petra Diamonds Limited has completed the sale of its entire interest in Williamson Diamonds Limited to Pink Diamonds Investments Limited for up to $16 million. The transaction, approved by the Tanzanian Fair Competition Commission, allows Petra to use the proceeds for general corporate purposes and reflects a strategic decision to consolidate ownership of Williamson Diamonds Limited under Pink Diamonds.

The most recent analyst rating on (GB:PDL) stock is a Hold with a £0.50 price target. To see the full list of analyst forecasts on Petra Diamonds stock, see the GB:PDL Stock Forecast page.