Petra Diamonds Limited (LSE:PDL, OTC:PDLMF), in its fourth quarter update, highlighted “significant steps” taken to become a simpler, more streamlined business – and, separately, announced a refinancing.
It reported fourth-quarter revenue of $50 million, up 19% quarter-over-quarter, taking the full-year tally to $206 million.
Net debt stood at $264 million at the end of June, including $99 million in a fully drawn revolving credit facility.
In the quarter, diamond tender 7 saw the delivery of $21 million worth of stones, with average prices edging up 3% compared to the preceding two tenders. And, it noted, that in the new financial year it began with a $25 million tender which saw prices reach $109 per carat at the Cullinan mine, and $92 for the Finsch mine.
“Both Cullinan Mine and Finsch are performing well, and despite multiple internal restructuring and cost reduction initiatives over the year, we have delivered overall annual production within guidance for FY 2025,” co-interim CEOs Vivek Gadodia and Juan Kemp commented in the statement.
“Finsch is now operating in line with expectations on the 2-shift system that was implemented at the beginning of FY25.
“The change from continuous operations to a 3-shift configuration has been completed at Cullinan Mine, which also concludes our internal Business Restructuring Plan announced in January.”
Petra said it had agreed in principle a refinancing plan for debt maturing in early 2026.
It includes extending the maturity of the ZAR 1.75 billion revolving credit facility to December 2029, extending the maturity of 9.75% senior secured second lien notes to March 2030 with amended terms.
Also, it is raising $25 million through an underwritten rights issue, priced at 16.5 pence per share, underwritten by key shareholders.
“The focus of the refinancing discussions has been to preserve cash in the business, while solving for the need to complete our extension projects, both at the Cullinan Mine and Finsch, to unlock long-term value,” Gadodia and Kemp added.
“Our focus remains on closing out the refinancing over the next few months, while ensuring delivery of our updated business plan.”