Petra Diamonds (PDL) AI Stock Analysis

• Market Cap: £50.31M
• Dividend Yield: N/A
• Average Volume (3M): 63.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -45.11%
• EPS Growth: 2.30%
• Country: UK
• Employees: 2,870
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): -0.17
• Shares Outstanding: 335,420,800
• 10 Day Avg. Volume: 60,204
• 30 Day Avg. Volume: 63,713
• PEG Ratio: 0.02
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -1.25
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: 14.50p ▼(-16.43% Downside)

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

High-value asset base (Cullinan, Finsch)

Ownership of world-recognized mines producing gem-quality stones provides a durable competitive advantage. Premium stones from these assets can command outsized prices at auction, supporting long-term revenue potential and strategic bargaining power with global buyers if operations and market access are maintained.

Specialization in premium rough diamonds and auction channels

A business model focused on premium rough diamonds and established auction/contract channels delivers structural pricing leverage versus lower-grade producers. Long-term contracts and auction access support more predictable placement of high-value stones and durability of revenue when diamond demand stabilizes.

Leading independent presence in southern Africa

Scale as a multi-mine independent in a diamond-producing region provides operational diversification and commercial scale. Multiple assets reduce single-mine operational risk, enable shared services and marketing scale, and underpin medium-term resilience versus smaller, single-asset peers.

Negative Factors

Steep revenue decline and negative margins

A ~45% revenue contraction combined with negative gross and net margins indicates persistent demand or operational issues. Prolonged top-line weakness erodes fixed-cost coverage, undermines reinvestment and margin recovery prospects, and can entrench a multi-quarter downturn without structural remediation.

High leverage and limited equity support

Heavy leverage reduces financial flexibility and raises refinancing and interest service risk. With low equity backing, the company faces constrained options for funding capex or smoothing cyclical dips, increasing the likelihood of asset sales or covenant pressure over the medium term.

Negative free cash flow and declining cash generation

Sustained negative free cash flow limits the ability to service debt, invest in mines, or fund working capital without external financing. Declining cash generation forces reliance on new capital or asset disposals, which can dilute recovery prospects and constrain operational turnaround efforts.

Petra Diamonds Business Overview & Revenue Model

Company Description

Petra Diamonds (PDL) is a leading independent diamond mining group, engaged in the exploration, mining, and sale of rough diamonds. The company operates several diamond mines in southern Africa, primarily focusing on high-value gem-quality diamonds. With a commitment to sustainable practices and community engagement, Petra Diamonds plays a significant role in the premium diamond market, leveraging its expertise in mining and processing to deliver exceptional products to customers around the globe.

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 are sold at auction and through long-term contracts. Key revenue streams include direct sales to diamond dealers and manufacturers, as well as participation in global diamond auctions, where premium prices can be achieved for rare stones. Additionally, Petra Diamonds benefits from partnerships with other stakeholders in the diamond industry, including collaborations for marketing and distribution. The company's emphasis on producing high-value diamonds allows it to capitalize on favorable market conditions and maintain profitability, even amid fluctuations in the broader commodity markets.

Petra Diamonds Financial Statement Overview

Summary

Petra Diamonds is facing significant financial challenges across all verticals. The income statement shows declining revenue and negative profitability margins, indicating operational difficulties. The balance sheet is heavily leveraged, with a high debt-to-equity ratio and negative return on equity, suggesting financial instability. The cash flow statement highlights negative free cash flow and declining cash flow growth, pointing to liquidity issues. Overall, the company is under financial strain with risks associated with high leverage and poor cash flow management.

Income Statement

Petra Diamonds has experienced a significant decline in revenue, with a 45.6% drop in the latest year. The company has been unable to maintain profitability, as evidenced by negative gross and net profit margins. The EBIT and EBITDA margins are also negative, indicating operational challenges. The declining revenue trend and negative margins suggest financial instability in the income statement.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. The equity ratio is relatively low, suggesting limited equity financing. Return on equity is negative, reflecting poor profitability. Overall, the balance sheet indicates financial strain with high leverage and low equity support.

Cash Flow

The cash flow statement reveals a concerning trend with negative free cash flow and a substantial decline in free cash flow growth. The operating cash flow to net income ratio is positive, but the free cash flow to net income ratio is negative, highlighting cash flow challenges. The company's cash flow position is weak, with declining free cash flow and insufficient cash generation to cover net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2021	Dec 2021
Income Statement
Total Revenue	160.01M	160.01M	367.00M	325.00M	406.90M	563.70M
Gross Profit	-41.74M	-41.74M	-27.00M	28.00M	49.90M	206.30M
EBITDA	-57.20M	-57.20M	3.00M	84.00M	364.90M	277.10M
Net Income	-66.48M	-66.48M	-86.00M	-105.00M	187.10M	69.00M
Balance Sheet
Total Assets	393.33M	393.33M	772.00M	861.00M	1.08B	1.11B
Cash, Cash Equivalents and Short-Term Investments	37.22M	37.22M	42.00M	44.00M	147.70M	271.90M
Total Debt	238.63M	238.63M	304.00M	276.00M	431.30M	388.60M
Total Liabilities	325.46M	325.46M	555.00M	544.00M	638.30M	632.40M
Stockholders Equity	80.27M	80.27M	244.00M	321.00M	450.80M	473.80M
Cash Flow
Free Cash Flow	-32.58M	-33.24M	-42.00M	-70.00M	107.60M	228.50M
Operating Cash Flow	34.81M	25.51M	42.00M	43.00M	127.00M	282.50M
Investing Cash Flow	-56.30M	-51.79M	-93.00M	-107.00M	-25.40M	-52.90M
Financing Cash Flow	35.80M	36.33M	12.00M	-155.00M	-8.00M	-101.40M

Petra Diamonds Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 17.35 is above the 20-day moving average (MA) of 16.80, above the 50-day MA of 17.07, and below the 200-day MA of 17.53, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 37.45 is Neutral, neither overbought nor oversold. The STOCH value of 1.10 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GEMD	63 Neutral	£4.16M	-0.50	-8.98%	―	-19.24%	-1347.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KDR	49 Neutral	£1.13M	-3.59	-2.79%	―	―	23.81%
BOD	46 Neutral	£2.70M	-2.81	―	―	―	―
GEMR	45 Neutral	£2.47M	-0.74	-148.58%	―	―	―
PDL	41 Neutral	£50.31M	-0.46	-70.13%	―	-45.11%	2.30%

Petra Diamonds Corporate Events

Petra Diamonds to Combine H1 Operating Update with Interim Results in Streamlining Move

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 move signals a continued review of how the group engages with the market within existing reporting requirements, suggesting a shift toward more integrated disclosure that could simplify communications for investors and other stakeholders.

The most recent analyst rating on (GB:PDL) stock is a Sell with a £15.00 price target. To see the full list of analyst forecasts on Petra Diamonds stock, see the GB:PDL Stock Forecast page.

Petra Diamonds Confirms Total Voting Rights Following Year-End Capital Check

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 provides the formal denominator for shareholders assessing whether they must disclose holdings or changes in interests under UK transparency rules, reinforcing clarity around Petra’s capital structure and regulatory compliance for investors.

The most recent analyst rating on (GB:PDL) stock is a Hold with a £16.00 price target. To see the full list of analyst forecasts on Petra Diamonds stock, see the GB:PDL Stock Forecast page.

Petra Diamonds Drops Moody’s Ratings to Cut Costs, Keeps S&P Coverage

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 broader cost-optimisation efforts. The miner emphasised that the move is not driven by any deterioration in trading, financial position, liquidity or outlook and is unrelated to any credit event, and it will retain ratings coverage through S&P Global Ratings to comply with covenants on its Second Lien Notes, where it was recently upgraded after a successful refinancing.

The most recent analyst rating on (GB:PDL) stock is a Hold with a £16.00 price target. To see the full list of analyst forecasts on Petra Diamonds stock, see the GB:PDL Stock Forecast page.

Petra Diamonds to Settle Bondholder Payments with New Shares

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 2025 coupon in cash and shares, while the June 2026 coupon will be fully settled in shares, impacting the company’s share structure and potentially enhancing its financial stability and market position.

The most recent analyst rating on (GB:PDL) stock is a Hold with a £11.00 price target. To see the full list of analyst forecasts on Petra Diamonds stock, see the GB:PDL Stock Forecast page.

Petra Diamonds AGM Resolutions Passed Amid Shareholder Concerns

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 its auditors, indicating plans to engage with shareholders to address concerns. This outcome reflects Petra’s ongoing commitment to maintaining transparency and addressing stakeholder interests.

The most recent analyst rating on (GB:PDL) stock is a Hold with a £11.00 price target. To see the full list of analyst forecasts on Petra Diamonds stock, see the GB:PDL Stock Forecast page.

Bernard Pryor Steps Down from Petra Diamonds Board

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 the Board in 2019, has been instrumental in guiding the company through significant changes, and his contributions are acknowledged as the company continues to focus on its strategic objectives.

The most recent analyst rating on (GB:PDL) stock is a Hold with a £11.00 price target. To see the full list of analyst forecasts on Petra Diamonds stock, see the GB:PDL Stock Forecast page.

Petra Diamonds Secures Shareholder Approval for £18.8 Million Rights Issue

Petra Diamonds Limited announced that all resolutions proposed at its Special General Meeting were approved by shareholders, enabling the company to proceed with a fully underwritten Rights Issue to raise approximately £18.8 million. This financial maneuver is expected to enhance Petra’s operational capabilities and support its strategic focus on value-driven production, potentially strengthening its market position and benefiting stakeholders through improved financial health and long-term sustainability.

The most recent analyst rating on (GB:PDL) stock is a Hold with a £11.00 price target. To see the full list of analyst forecasts on Petra Diamonds stock, see the GB:PDL Stock Forecast page.