Shares in Petra Diamonds Limited (LSE:PDL, OTC:PDLMF) fell 8% in early trading on Wednesday after the miner warned it will miss its net cash flow target for the year.
The company blamed continued market weakness and a disappointing product mix at its flagship Cullinan mine in South Africa.
Petra had expected to break even in 2025, but softer diamond prices and fewer large, high-value stones have hit revenues. It has postponed the sale of Cullinan goods from its latest tender (around 200,000 carats) citing uncertainty caused by newly announced US tariffs.
Sales from its other two mines, Finsch and Williamson, raised $18 million, with prices up 9% on the previous tender.
Year-to-date revenue from rough diamond sales is $103 million, down from $138 million over the same period last year.
Petra said recent restructuring has cut costs, but achieving financial goals now depends on a recovery in prices and improved output from Cullinan in the coming months.
On the sale deferral, Peel Hunt noted that the strategy may actually result in better pricing. The broker reiterate its 'buy' advice and 50p price target.
The stock fell 2.2p to 25.8p.