SourcingSep 25, 2025
2 African Countries Aim to Take Stake in De Beers SourcingOct 23, 2025
Petra Diamonds Turns to Shareholders to Raise Capital
The struggling diamond mining company, which owns the historic Cullinan mine, has launched a rights issue to raise about $25 million.
The new plant and final recovery buildings at the Cullinan Diamond Mine in South Africa, owned by Petra Diamonds. The company, which recently sold off two of its four diamond mines, is struggling and has launched a rights issue it hopes will raise about $25 million. (Photo courtesy of Petra Diamonds Ltd.)
London—Petra Diamonds Ltd. has launched a rights issue that aims to raise £18.8 million (about $25.1 million) in capital to help the London-based diamond miner stay afloat.
A rights issue is a financing mechanism that gives a company’s existing shareholders the opportunity to buy more shares, usually at a discounted price.
Petra said it is issuing more than 114 million new ordinary shares at a price of 16.5 pence per share. The company’s current shares were trading at 19.80 pence as of press time.
It said the rights issue was fully underwritten and committed by a select group of shareholders under a backstop agreement.
It is the final phase in the company’s refinancing plan announced in August.
The plan includes pushing the maturity date for Petra’s senior secured bank debt from January 2026 to December 2029 and extending the maturity date of its senior secured second lien notes from March 2026 to March 2030.
Both the refinancing and the rights issue are subject to shareholder approval. A special general meeting during which shareholders will vote on both is scheduled for Nov. 6.
“Petra has undergone immense change over the past 18 months in order to become a streamlined business that is now positioned to deliver sustained value for its stakeholders,” said Vivek Gadodia, the company’s interim joint CEO.
“This has enabled us to refinance our debt with a fit-for-purpose solution that allows capital execution while providing the headroom and flexibility to weather the current market conditions. I would like to once again thank our shareholders, noteholders, and our senior lender for coming together in support of the company.”
Related stories will be right here …
A rights issue is a financing mechanism that gives a company’s existing shareholders the opportunity to buy more shares, usually at a discounted price.
Petra said it is issuing more than 114 million new ordinary shares at a price of 16.5 pence per share. The company’s current shares were trading at 19.80 pence as of press time.
It said the rights issue was fully underwritten and committed by a select group of shareholders under a backstop agreement.
It is the final phase in the company’s refinancing plan announced in August.
The plan includes pushing the maturity date for Petra’s senior secured bank debt from January 2026 to December 2029 and extending the maturity date of its senior secured second lien notes from March 2026 to March 2030.
Both the refinancing and the rights issue are subject to shareholder approval. A special general meeting during which shareholders will vote on both is scheduled for Nov. 6.
“Petra has undergone immense change over the past 18 months in order to become a streamlined business that is now positioned to deliver sustained value for its stakeholders,” said Vivek Gadodia, the company’s interim joint CEO.
“This has enabled us to refinance our debt with a fit-for-purpose solution that allows capital execution while providing the headroom and flexibility to weather the current market conditions. I would like to once again thank our shareholders, noteholders, and our senior lender for coming together in support of the company.”
Petra announced the launch of the rights issue in conjunction with the release of its annual report for fiscal year 2025, ended June 30.
The results exclude the Williamson and Koffiefontein mines.
Petra sold Koffiefontein in October 2024, and it finalized its sale of Williamson in May; it still operates the Cullinan and Finsch mines.
In FY 2025, Petra’s revenue fell 33 percent to $207 million (FY 2024: $310 million).
The average realized price for the company’s rough diamonds was $87 per carat, down 19 percent from $108 per carat in fiscal year 2024, a decline largely due to a 17 percent drop in like-for-like diamond prices.
Loss before taxation increased 68 percent, from $114 million in FY 2024 to $191 million in FY 2025, due to lower sales, unfavorable product mix, and an overall weaker market for rough diamonds.
Gadodia and his co-interim CEO Juan Kemp said, “FY 2025 was a year of inward focus and change for Petra, against another challenging year for the industry.
“We achieved some significant milestones for the business, including the sale of Koffiefontein and Williamson, and are on track to deliver the refinancing that will secure our future. We end the year as a lower cost, streamlined business with world-class assets, and a clear path forward.”
Gadodia and Kemp said since the company’s fiscal year ended in June, it has cut down operational hours at Cullinan, which has moved from a 24/7 operation to a three-shift operation.
At Finsch, it is looking to raise enough money to open up parts of a new ore body.
They also said that the diamond market has remained “volatile” since the end of June, noting that the 50 percent tariff the United States has placed on Indian imports is the biggest factor affecting the rough diamond market right now.
Gadodia and Kemp have been serving as Petra’s interim joint CEOs since January, when CEO Richard Duffy resigned.
Editors' Picks
Sponsored by
More on Sourcing
The Latest
Lab-GrownOct 13, 2026
Stephanie Gottlieb Takes Lab-Grown Diamond Collection WholesaleThe jewelry designer has partnered with Sofer Jewelry to distribute her 85-piece lab-grown diamond collection.
IndependentsOct 13, 2026
Retailer Hall of Fame 2026: Sean DunnDunn, this year’s Single-Store Independent inductee, is passionate about innovation and telling the story of natural diamonds.
AuctionsOct 13, 2026
Christie's Geneva To Auction 'Bulgari Pink' DiamondThe 24-carat fancy intense pink diamond ring could fetch up to $18 million at the November sale.
Brought to you by
Meet Gemology’s Next Generation Microscope: GIA® Gemolite® NXT Professional EditionExperience gemstones with greater precision and comfort than ever before.
IndependentsOct 13, 2026
Greenwich St. Jewelers’ New Candle Smells Like HomeThe “Island Jewel” candle honors New York City and Puerto Rico and raises money for the island’s water relief efforts.
Weekly QuizOct 08, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
TechnologyOct 13, 2026
GemFind Is a New JA Member Benefit Partner The partnership will give JA members access to preferred pricing, exclusive benefits, technology solutions, education, and resources.
SurveysOct 09, 2026
These Will Be the 10 Busiest Days for In-Store Shopping This Holiday SeasonStores should expect to see the most customers on Nov. 27, and Christmas week is expected to be hectic too, as Dec. 25 falls on a Friday.
Brought to you by
Your Piece Could Be the One Editors Talk AboutSubmit your pieces for a chance to win in this year's competition.
CollectionsOct 09, 2026
Elisa Solomon Collabs With Serendipity 3 on ‘Frozen Hot Chocolate’ CharmThe charm, our Piece of the Week, features brown diamond frozen hot chocolate topped with white diamond whipped cream and a ruby straw.
AuctionsOct 09, 2026
8-Carat Blue Diamond Goes Unsold at UK Jewelry Auction The top lot of Elmwood’s recent fine jewelry sale in London was a 1.84-carat, D color Tiffany & Co. solitaire diamond ring.
WatchesOct 09, 2026
Movado to Sell Majority Stake in Ebel for $66.5MThe watch company agreed to sell a 95 percent interest to a group comprised of F.P. Journe, Chanel, and Swiss watch exec Pierre Jacques.
Policies & IssuesOct 08, 2026
Third Wave of IEEPA Tariff Refunds Begins This round of tariff refunds is for importers that have sued over IEEPA tariffs in the Court of International Trade and won.
CollectionsOct 08, 2026
Brent Neale’s New Collection Goes ‘Back to Basics’It revisits the brand’s most requested silhouettes, from "Pillow"-set necklaces and bracelets to "Signature"-set rings and earrings.
Events & AwardsOct 08, 2026
Pattons Fine Jewelry Sweeps Local Design ContestAra Chanakian, a jeweler at Pattons, took home top honors in every category at Jewelers of Louisiana’s annual jewelry design competition.
AuctionsOct 08, 2026
Reba McEntire’s Jewelry, Watches Head to Julien’s AuctionsThe live charity benefit sale in Nashville will also feature gowns, boots, and other memorabilia from the country music legend.
Supplier BulletinOct 08, 2026
Overnight Mountings’ Bridal Builder Helps Jewelers Turn Custom Design into a Hands-On Selling ExperienceSponsored by Overnight Mountings
Policies & IssuesOct 07, 2026
The Plumb Club Amplifies Its Voice as Geopolitical Pressures MountThe supplier organization recently joined JA and JVC to have more input on political issues affecting the jewelry industry.
CollectionsOct 07, 2026
Blue Nile, Royal Asscher Collection Highlights Natural Diamond BeautyBlue Nile, a Signet Jewelers-owned brand, is now Royal Asscher’s exclusive licensed retailer in North America.
CollectionsOct 07, 2026
4 Standout Pieces in Audemars Piguet’s First High Jewelry Collection “Royal Oak” pays homage to the brand’s most popular watch model using 18-karat gold as well as diamonds, emeralds, and sapphires.
MajorsOct 07, 2026
Empire Safe & Vault Promotes Juan Morales to CEOAs part of the transition, Joseph Nicosia has stepped into the role of COO.
CrimeOct 06, 2026
6 Charged in Connection to String of New Jersey Smash-and-GrabsThe alleged thieves used crow bars and sledgehammers to smash into jewelry stores across the state.
ColumnistsOct 06, 2026
Sherry Smith: Is the Consumer Really Trading Up?Ahead of the holidays, Smith urges jewelers to take a hard look at who’s buying jewelry, what they’re purchasing, and who’s stopped buying.
SourcingOct 06, 2026
DDG Taps Influencers for ‘My Diamond Does Good’ CampaignIn the new consumer-facing campaign, four fashion and lifestyle creators share the stories behind their natural diamond pieces.
MajorsOct 06, 2026
Frederick Goldman Names COO, CMOFGI President John Orrico is also leaving the company after more than 13 years.
Events & AwardsOct 06, 2026
JIS Fall Returns to MiamiThe 2026 edition will feature presentations on alternative materials and design trends, as well as pop-up activations on the show floor.
SourcingOct 05, 2026
De Beers to Take Full Ownership of Gahcho KuéIt is the last fully operational diamond mine in Canada following the recent closures of Ekati and Diavik.
AuctionsOct 05, 2026
The Star Cats of the Sandy Lerner AuctionThese jewels stood out at Bonhams’ sale of the cat-loving tech entrepreneur’s collection of objects depicting the feline form.
