Petra Diamonds secures R300m loan as revenue plunges amid diamond market slump

South African diamond producer Petra Diamonds reported a 45% quarter‑on‑quarter drop in revenue from its South African operations in the fourth quarter of its 2026 fiscal year, while net debt rose to $322 million after losses at the suspended Finsch mine. The company cited weak demand, especially in China, and competition from laboratory‑grown diamonds as key factors depressing natural diamond prices.

In its 2026 operating update, Petra announced it had secured a R300 million working‑capital loan from a senior lender and an interest deferral of $6 million to January 2027. The financing supports the ongoing business rescue of the Finsch mine, which remains under administration after production was halted in May. CEO Vivek Gadodia said a new business plan will be presented for shareholder approval.

Petra also highlighted the resilience of larger stones from its historic Cullinan mine, where average prices rose to $106 per carat for the year, helping to offset broader market weakness. The company plans to focus on the Cullinan C‑Cut, which yields large, fancy‑coloured diamonds, as part of its strategy to mitigate the slump affecting smaller gem‑stones.