Petra Diamonds Ltd (GB:PDL)
LSE:PDL
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Petra Diamonds
(LSE:PDL)
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Rating:41Neutral
Price Target:
15.00 p
▼(-12.18% Downside)
Action:ReiteratedDate:12/19/25
Petra Diamonds is under significant financial strain, with declining revenue, negative profitability, and high leverage posing substantial risks. The technical analysis indicates a bearish trend, further impacting the stock's outlook. The negative P/E ratio and lack of dividend yield also detract from its valuation appeal. These factors collectively result in a low overall stock score.
Positive Factors
Premium asset exposure (Cullinan, Finsch)
Control of premium assets such as Cullinan and Finsch gives Petra structural access to high-value gem-quality stones sold at auction and via contracts. This exposure supports pricing power and higher margins for rare stones, providing a durable revenue lever when the market for large gems tightens.
Negative Factors
Steep revenue decline and negative margins
A ~45% revenue fall combined with negative gross, EBIT and net margins indicates structural demand weakness or operational underperformance. Persistent top-line contraction and unprofitable operations erode reinvestment capacity and make recovery dependent on sustained higher diamond prices or meaningful cost and production improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Premium asset exposure (Cullinan, Finsch)
Control of premium assets such as Cullinan and Finsch gives Petra structural access to high-value gem-quality stones sold at auction and via contracts. This exposure supports pricing power and higher margins for rare stones, providing a durable revenue lever when the market for large gems tightens.
Read all positive factors
Petra Diamonds (PDL) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£57.27M
Dividend YieldN/A
Average Volume (3M)63.71K
Price to Earnings (P/E)―
Beta (1Y)0.50
Revenue Growth-45.11%
EPS Growth2.30%
CountryUK
Employees2,870
SectorBasic Materials
Sector Strength58
IndustryOther Precious Metals
Share Statistics
EPS (TTM)-0.08
Shares Outstanding335,420,800
10 Day Avg. Volume60,204
30 Day Avg. Volume63,713
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.52
Price to Sales (P/S)0.26
P/FCF Ratio-1.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£15.00Price Target Upside-12.18% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.09
Revenue Forecast (FY)£275.30M
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...
How the Company Makes Money
Petra Diamonds generates revenue primarily through the sale of rough diamonds extracted from its mining operations. The company operates several well-known mines, including the Cullinan and Finsch mines, which produce high-quality diamonds that ar...
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 | 160.01M | 367.00M | 325.00M | 563.70M | 243.30M |
| Gross Profit | -41.74M | -27.00M | 28.00M | 206.30M | 4.00M |
| EBITDA | -57.20M | 3.00M | 84.00M | 277.10M | -63.60M |
| Net Income | -66.48M | -86.00M | -105.00M | 69.00M | -190.00M |
Balance Sheet | |||||
| Total Assets | 393.33M | 772.00M | 861.00M | 1.11B | 1.04B |
| Cash, Cash Equivalents and Short-Term Investments | 37.22M | 42.00M | 44.00M | 271.90M | 53.60M |
| Total Debt | 238.63M | 304.00M | 276.00M | 388.60M | 882.30M |
| Total Liabilities | 325.46M | 555.00M | 544.00M | 632.40M | 1.03B |
| Stockholders Equity | 80.27M | 244.00M | 321.00M | 473.80M | 30.50M |
Cash Flow | |||||
| Free Cash Flow | -33.24M | -42.00M | -70.00M | 228.50M | -47.40M |
| Operating Cash Flow | 25.51M | 42.00M | 43.00M | 282.50M | -8.10M |
| Investing Cash Flow | -51.79M | -93.00M | -107.00M | -52.90M | -51.00M |
| Financing Cash Flow | 36.33M | 12.00M | -155.00M | -101.40M | 52.40M |
Petra Diamonds Technical Analysis
Neutral
17.08
Price Trends
17.02
Positive
17.20
Negative
16.68
Positive
Market Momentum
-0.06
Positive
48.36
Neutral
24.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PDL, the sentiment is Neutral. The current price of 17.08 is below the 20-day moving average (MA) of 17.30, above the 50-day MA of 17.02, and above the 200-day MA of 16.68, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 48.36 is Neutral, neither overbought nor oversold. The STOCH value of 24.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
47 Neutral | £5.32M | -0.05 | -7.68% | ― | -19.24% | -1347.92% | |
47 Neutral | £1.52M | -1.75 | -3.17% | ― | ― | 23.81% | |
45 Neutral | £1.54M | -1.05 | -148.58% | ― | ― | ― | |
41 Neutral | £57.27M | ― | -186.54% | ― | -45.11% | 2.30% |
* Basic Materials Sector Average
GB:PDL
Petra Diamonds
17.05
-9.49
-35.77%
GB:GEMD
Gem Diamonds
3.68
-4.48
-54.91%
GB:KDR
Karelian Diamond Resources
0.70
0.08
12.90%
GB:SEFA
Shefa Gems Ltd
0.13
0.00
0.00%
GB:GEMR
URA Holdings PLC
0.25
-0.21
-45.05%
Petra Diamonds Corporate Events
Business Operations and StrategyFinancial Disclosures
Petra Diamonds to Combine H1 Operating Update with Interim Results in Streamlining Move
Neutral
Jan 22, 2026
Petra Diamonds said it will consolidate its H1 FY 2026 operating update for the six months to 31 December 2025 with its interim results announcement, scheduled for late February 2026, as part of a drive to streamline management activities. The mov...
Regulatory Filings and Compliance
Petra Diamonds Confirms Total Voting Rights Following Year-End Capital Check
Neutral
Jan 5, 2026
Petra Diamonds has confirmed that, as of 31 December 2025, its issued share capital comprises 335,420,793 ordinary shares of 0.05 pence each, all carrying voting rights and with no shares held in treasury. This updated total voting rights figure p...
Business Operations and Strategy
Petra Diamonds Drops Moody’s Ratings to Cut Costs, Keeps S&P Coverage
Neutral
Dec 19, 2025
Petra Diamonds has requested the withdrawal of all its Moody’s credit ratings, including those for its subsidiary Petra Diamonds US$ Treasury Plc, following the company’s decision to cancel its subscription with the agency as part of b...
Business Operations and StrategyPrivate Placements and Financing
Petra Diamonds to Settle Bondholder Payments with New Shares
Positive
Dec 4, 2025
Petra Diamonds has announced that it will settle payments due to bondholders for the December 2025 and June 2026 coupons through the issuance of new shares, following a recent refinancing. This strategic move involves partially paying the December...
Executive/Board ChangesShareholder Meetings
Petra Diamonds AGM Resolutions Passed Amid Shareholder Concerns
Neutral
Nov 27, 2025
Petra Diamonds Limited announced the successful passing of all resolutions at its Annual General Meeting, except for one that was withdrawn due to a director’s resignation. The company noted significant opposition to the re-appointment of it...
Executive/Board ChangesShareholder Meetings
Bernard Pryor Steps Down from Petra Diamonds Board
Neutral
Nov 20, 2025
Petra Diamonds announced that Bernard Pryor will step down from the Board with immediate effect to focus on other executive roles. His departure will result in the withdrawal of the resolution to re-elect him at the upcoming AGM. Pryor, who joined...
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.