Petra Diamonds has committed all future run-of-mine production from its Cullinan Mine near Pretoria to a single buyer in return for at least US$20 million in advance payments, as the London-listed miner works to stay afloat during its strategic review.
The company said on Wednesday that its subsidiary, Cullinan Diamond Mine, signed a binding Advance Payment Agreement with an unnamed mid-stream diamantaire group. The money comes as revolving advances against future sales. Cullinan can end the deal at any time without penalty once outstanding amounts are repaid.
Lender holds off for up to 12 months
"The first quarter of the Year has been a truly challenging time for the Company." – Vivek Gadodia, CEO, Petra Diamonds
As a condition of the deal, Petra's senior secured lender agreed not to enforce on specified defaults for up to 12 months, or until the advances are repaid in full, subject to conditions.
Chief executive Vivek Gadodia said the two agreements give Petra "the platform to progress the other workstreams within the Strategic Review process". The review, launched on 1 October, covers short-term liquidity, a consensual refinancing and a possible sale of the company's assets. Petra said there is no certainty of the outcome.
Weaker prices, higher debt
In the first quarter of its 2027 financial year, to 30 September, Petra sold 329,948 carats for revenue of US$21 million, down from US$30 million in the previous quarter. The average price fell about 18% to US$63 a carat, from US$76, which the company put down to a weaker product mix and fewer high-value Type II stones.
Total production fell 9% to 291,517 carats. Two crushers serving the C-Cut were out of action in September and October, and cash constraints delayed the purchase of critical mining equipment, which began arriving in October. Management expects grade and product mix to improve from November.
Consolidated net debt rose to US$348 million, from US$322 million at the end of June, with US$7 million in unrestricted cash. Petra's R1.75 billion revolving credit facility and an extra R300 million Absa facility are both fully drawn.
Jobs and listing
A Section 189A restructuring at Cullinan and across the group ended in October with 25 positions made redundant, saving about US$3 million a year. At Finsch, in business rescue since May, all employees have been retrenched and a skeleton crew is overseeing the sale of more than 3,000 lots of equipment.
Petra's shares remain suspended after it missed the 31 October deadline for audited annual results; the company said it will seek to restore trading once the audit is published.
Why it matters
Cullinan, which produced the 3,106-carat Cullinan diamond in 1905, is Petra's principal operating mine. The advance payment keeps it running for now, but its long-term future, and the jobs that depend on it, rest on the outcome of the refinancing or sale talks.
Source: Petra Diamonds Q1 FY 2027 Business, Strategic Review and Operating Update, 4 November 2026; additional reporting from Miningmx.