Petra Diamonds, the independent diamond miner in South Africa, said it has begun a business rescue process at its Finsch Mine.
The company said the move follows an "unprecedentedly weak diamond market", a sustained stronger rand and deteriorating prices for smaller stones, with realised tender prices in April-May averaging c. $81/ct at Cullinan (vs $109/ct in Q3) and c. $47/ct at Finsch (vs $56/ct in Q3).
Petra noted that over 90% of Finsch’s output is 2 carats and below, and that has seen a structural shift in pricing for smaller stones.
It will now appoint a Business Rescue Practitioner to take custodianship of Finsch.
"We have full confidence on the Cullinan Mine’s product mix to outperform the market," Vivek Gadodia said.
The company has secured its senior secured bank lender’s consent that the Finsch Business Rescue will not trigger a default and has obtained commitments from more than 50% of senior second lien noteholders, launching a formal bond consent solicitation on 29 May.
Petra said it intends to launch a Section 189A process to reduce costs across Cullinan and the group, has suspended capital development at Finsch, refocused activity on higher-value areas and is piloting productivity measures.
It also announced a number of management changes, PKF Littlejohn has been appointed auditor and group guidance remains suspended pending an updated business plan, which is expected by the end of September 2026.
