Petra Diamonds (PDL) H1 2026 earnings summary

Executive summary

• Transitioned to a leaner business model after divesting non-core assets, focusing on two capital-optimized mines and successfully refinancing debt, raising $25 million via a rights issue.

• Revenue declined to $100 million (H1 FY 2025: $115 million), mainly due to tender timing, inventory build-up, and weaker diamond market conditions.

• Adjusted EBITDA rose to $26 million from $15 million year-over-year, driven by cost reductions and improved product mix.

• Net loss after tax widened to $190 million, impacted by significant impairment charges at Cullinan ($106 million) and Finsch ($51 million).

• Operational delivery improved, with both mines adapting to new shift patterns, higher carat production, and the recovery of a 41.82 carat blue diamond at Cullinan.

Financial highlights

• Revenue for H1 FY 2026 was $100 million, down 13% year-over-year, with average price per carat at $104.

• Adjusted EBITDA increased to $26 million, with margin improving to 26% from 13% year-over-year.

• Net loss after tax was $190 million, with basic loss per share at 70 US cents.

• Operational free cash outflow was $6 million, compared to a $16 million inflow in the prior year.

• Capital expenditure rose to $34 million, with spending weighted to the second half.

Outlook and guidance

• Production guidance for FY 2026 remains on track, with focus on safe, reliable operations, margin improvement, and progressing expansion projects at both mines.

• Continued emphasis on cost/capex optimization and vigilance on FX fluctuations to offset market and currency headwinds.

• Market recovery timing remains uncertain, but potential tailwinds include Indian and Chinese demand and possible reduction in U.S. tariffs on Indian diamonds.