Petra Diamonds (PDL) H2 2026 TU earnings summary

Executive summary

• Q4 FY 2026 marked by ongoing geopolitical tensions, structural changes in small diamond pricing, and a strong Rand, prompting a shift in production focus and business reassessment.

• Cullinan Mine production prioritized higher-value C-Cut stones, partially offsetting weaker market conditions; Finsch Mine entered Business Rescue due to unsustainable economics.

• Safety milestones achieved, including nine million fatality-free shifts, despite a slight uptick in LTIFR in Q4 linked to restructuring.

Financial highlights

• FY 2026 revenue flat at $206 million year-over-year; Q4 revenue dropped to $38 million from $68 million in Q3.

• Net debt increased to $322 million as of June 30, 2026 (from $298 million at March 31, 2026), mainly due to Finsch losses.

• Cash on hand at $28 million, with liquidity tight due to weaker prices and ring-fenced Finsch cash.

• Cullinan Mine average price per carat rose to $106 in FY 2026 (from $96 in FY 2025); Finsch fell to $64 (from $74).

Outlook and guidance

• Guidance remains suspended pending completion of the Section 189A process and updated business plan, expected by September 2026.

• Focus remains on capital and cost optimization, with ongoing business improvement initiatives.