LONDON, July 2, 2026, 11:01 BST
- Petra Diamonds was quoted at 7.06p at 1000 BST, up 0.34p; the LSE’s regular session runs 0800-1630 BST.
- The company is issuing 19.22 million new shares to pay a US$13.0 million June coupon at a 50p reference price, taking voting rights to 354.64 million shares.
- At the 1000 BST share price, those new shares had a market value of about £1.36 million, against a £9.61 million issue value at 50p.
- The pressure point remains diamond pricing: Petra said April-May tender prices averaged about $81/ct at Cullinan and $47/ct at Finsch, down from Q3 levels.
Petra Diamonds Limited (LON:PDL) shares rose in London morning trade on Thursday, but the larger investor signal was in Wednesday’s share admission notice: a small-looking 5.7% increase in shares carries a much larger message about debt, liquidity and the market’s view of the miner.
Petra said it would settle its June 2026 coupon on the notes in shares rather than cash. The coupon was US$13.0 million, at 11.5% annual interest, and the shares are being issued at 50p each. The stock was quoted at 7.06p on Petra’s investor page at 1000 BST, about 86% below that coupon reference price.
| Measure | Figure | Investor read-through |
|---|---|---|
| New shares for coupon | 19.22 mln | Adds supply to a thin small-cap stock |
| Shares before admission | 335.42 mln | Calculated from the RNS total |
| Shares after admission | 354.64 mln | New voting-right denominator |
| Increase vs prior share count | 5.7% | Modest dilution on paper |
| Issue value at 50p | £9.61 mln | Big relative to equity value |
| Market value at 7.06p | £1.36 mln | Shows the gap to traded price |
| Implied market cap at 7.06p | £25.0 mln | Coupon value equals about 38% of this |
That matters because Petra is conserving cash while the equity market prices the company like a stressed option on diamond prices and the Cullinan mine. Existing holders get limited percentage dilution from this coupon payment, but the deal also leaves a clear marker: the debt package is using a conversion price far above the live stock.
The cash strain is tied to operations, not just the balance sheet. Chief Executive Vivek Gadodia said on May 29 the company faced an “unprecedentedly weak diamond market” and “deterioration in the value” of smaller diamonds. Petra put Finsch into business rescue, said guidance for FY2026 to FY2030 remained suspended, and said it was working on a new business plan due by the end of September. Investegate
The latest mine-level pricing numbers show why Finsch is the weak link. Petra said more than 90% of Finsch production is rough diamonds of 2 carats and below, the part of the market where the company sees a “structural shift on pricing”.
| Mine | Q3 FY2026 avg price | Apr-May 2026 avg price | Change |
|---|---|---|---|
| Cullinan | $109/ct | about $81/ct | -26% |
| Finsch | $56/ct | about $47/ct | -16% |
Wider rough-diamond data points are not giving Petra much help. Rapaport reported on July 1 that De Beers was poised to ease rough pricing at its July sight, with sightholders estimating De Beers book prices were 20%-30% above market for smaller rough under 1 carat and 5%-15% above market for larger sizes.
Petra’s Q3 sales were stronger on volume, but weaker on price. The company sold 781,797 carats in Q3 FY2026 for US$68 million, up from US$49 million in Q2, while the average group price fell 11% to US$87/ct from US$98/ct. Like-for-like prices fell 15%, partly offset by a better product mix.
The 41.82-carat Type IIb blue diamond from Cullinan helped that quarter. Petra said the stone’s sale brought an initial consideration booked in Q3 revenue and left Petra with an economic interest in the polished-sale profit, which could take about 12 months. Joint CEOs Vivek Gadodia and Juan Kemp said at the time the market was “challenging” but the blue stone could help extract “maximum value for Petra”.
The stock remains close to the bottom of its one-year range. AJ Bell data showed a year low of 6.20p and a year high of 22.6712p, with a quoted market value of £26.76 million. Its page also showed a wide 6.70p-7.98p sell/buy quote and volume of 4,161 shares, a sign that small prints can move the displayed price sharply.
Full April-May tender results are due with Petra’s Q4 FY2026 operating update.
