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Petra Diamonds Ltd (GB:PDL)
LSE:PDL
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Petra Diamonds
(LSE:PDL)
Rating:41Neutral
Price Target:
19.00p
▼(-5.47%Downside)
Petra Diamonds (PDL) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£38.26M
Dividend YieldN/A
Average Volume (3M)204.55K
Price to Earnings (P/E)―
Beta (1Y)0.34
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees2,870
SectorBasic Materials
Sector Strength69
IndustryOther Precious Metals
Share Statistics
EPS (TTM)-0.10
Shares Outstanding194,201,780
10 Day Avg. Volume267,577
30 Day Avg. Volume204,552
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)0.29
Price to Sales (P/S)0.00
P/FCF Ratio-2.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£30.00Price Target Upside49.25% Upside
Rating ConsensusHold
Number of Analyst Covering0
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 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 Earnings Call Summary
Earnings Call Date:Feb 18, 2025
(Q2-2025)
| % Change Since: -16.25%|
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.Q2-2025 Updates
Positive Updates
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.
Negative Updates
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 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
20.10
Price Trends
25.59
Negative
26.72
Negative
29.04
Negative
Market Momentum
-1.68
Positive
29.70
Positive
25.52
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 20.1 is below the 20-day moving average (MA) of 22.24, below the 50-day MA of 25.59, and below the 200-day MA of 29.04, indicating a bearish trend. The MACD of -1.68 indicates Positive momentum. The RSI at 29.70 is Positive, neither overbought nor oversold. The STOCH value of 25.52 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 (51)
Financial Indicators
Performance Comparison
GB:PDL
Petra Diamonds
20.10
-22.00
-52.26%
GB:BOD
Botswana Diamonds
0.14
-0.24
-63.16%
GB:GEMD
Gem Diamonds
7.05
-6.80
-49.10%
GB:KDR
Karelian Diamond Resources
0.58
-1.97
-77.25%
Petra Diamonds Corporate Events
M&A TransactionsBusiness Operations and Strategy
Petra Diamonds Completes Sale of Williamson Diamonds Interest
Neutral
May 14, 2025
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.
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.