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.
More on Sourcing
The Latest
AuctionsNov 20, 2025
Vanderbilt Jewels Shine at Phillips Sale, Pink Diamond WithdrawnA 43-carat sapphire brooch from the Vanderbilt collection was the top lot of the Geneva sale.
CollectionsNov 20, 2025
Rebecca Rau Jewels Debuts With ‘Then & Now’ CollectionRau is a fourth-generation art and antique dealer from M.S. Rau gallery whose first jewelry collection merges artifacts with modern design.
Policies & IssuesNov 20, 2025
RJC Names New Executive DirectorFormer De Beers sustainability leader Purvi Shah will take over the role in February 2026.
Brought to you by
Impacting Tomorrow TodayHow Jewelers of America’s 20 Under 40 are leading to ensure a brighter future for the jewelry industry.
WatchesNov 20, 2025
LVMH Takes Minority Stake in Citizen Group-Owned Movement Maker La Joux-Perret is based in La Chaux-de-Fonds, Switzerland, and makes solar quartz as well as mechanical watch movements.
Weekly QuizNov 20, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
GradingNov 20, 2025
Julia Griffith Joins SSEF as Head of EducationShe previously taught at Gem-A and is the founder of The Gem Academy.
CollectionsNov 19, 2025
Larkspur & Hawk Celebrates 25 Years With Helena Bonham Carter CampaignThe British actress and her daughter modeled pieces from the brand’s new “Palette” capsule for its “Once Upon a Time” holiday campaign.
Brought to you by
Roseco Releases New Full-Line CatalogRoseco’s 704-page catalog showcases new lab-grown diamonds, findings, tools & more—available in print or interactive digital editions.
TechnologyNov 19, 2025
Google Has a New Form for Reporting ‘Review Bombing’ Attacks Plus, the tech giant shares the steps retailers should take if they believe they’re a victim of a review extortion scam.
IndependentsNov 19, 2025
Houston Jeweler Keith Shaftel Retires, Next Generation Steps In Danny and Gaby Shaftel are now Shaftel Diamonds’ CEO and chief operating officer, respectively.
TrendsNov 19, 2025
Midas Chain Releases 2025 Holiday Style GuideThe jewelry manufacturer’s seasonal offering features its new “Melodie” bangles, as well as mini stud earrings and layering pieces.
Events & AwardsNov 18, 2025
NYC Jewelry Week 2025: 12 Must-See EventsWith more than 140 activations taking place in New York City now through Nov. 23, these 12 events are can’t-miss moments.
MajorsNov 18, 2025
Lugano Diamonds Files for Bankruptcy, Looking for BuyerThe Chapter 11 filing follows the resignation of CEO Moti Ferder, who stepped down after an investigation into the company’s finances.
Events & AwardsNov 18, 2025
A Giant, Bejeweled Moldy Berry Is on Display in LAThe artwork is part of an exhibition featuring works by Kathleen Ryan, an artist known for her gemstone-studded rotting fruit sculptures.
CrimeNov 17, 2025
Police Searching for 2 Suspects in Murder of Father, Son Jewelers Faustino Alamo Dominguez and his son, 25-year-old Luis Angel Alamo, were gunned down following an armed robbery at their jewelry store.
GradingNov 17, 2025
IGI Announces New President of North AmericaTiffany & Co. veteran Jeffrey Bennett has stepped into the role.
MajorsNov 17, 2025
Look Inside Robbins Brothers Fine Jewelers’ New Pasadena FlagshipThe showroom is located in a historic 1920s building in the Playhouse District.
Policies & IssuesNov 14, 2025
U.S., Switzerland Reach Deal That Drops Tariff to 15%The Swiss government announced the deal, which cuts the tax on Swiss imports by more than half, on social media Friday morning.
AuctionsNov 14, 2025
Napoleon’s Diamond Brooch Blows Away Auction Estimates A buyer paid $4.4 million for the piece, which Napoleon wore on his hat for special occasions and left behind when he fled Waterloo.
FinancialsNov 14, 2025
Richemont’s Q2 Jewelry Sales Up 12%Plus, how tariffs and the rising price of gold are affecting its watch and jewelry brands.
CollectionsNov 14, 2025
Piece of the Week: Silvia Furmanovich’s ‘Butterflies in Flight’ Jewelry BoxFurmanovich designed the box to hold Mellerio’s “Color Queen,” a high jewelry collection consisting of 10 rings.
Events & AwardsNov 14, 2025
JCK Names New Event DirectorJennifer Hopf, who has been with JCK since 2022, will lead the execution of the long-running jewelry trade show.
IndependentsNov 13, 2025
127-Year-Old New Orleans Jeweler to CloseAdler’s Jewelry is set to close its two stores as 82-year-old owner Coleman E. Adler II retires.
IndependentsNov 13, 2025
Green Lake Jewelry Works to Move to New Seattle StudioFounder Jim Tuttle shared how a dedication to craftsmanship and meaningful custom jewelry fueled the retailer’s double-digit growth.
MajorsNov 13, 2025
Vahan Jewelry Founder Leon ‘Sacha’ Der Calousdian Dies at 85The third-generation jeweler is remembered as a passionate creative with a love of art, traveling and sailboat racing.
CrimeNov 12, 2025
Father, Son Jewelers in Chicago Victims in Double Homicide JSA and Cook County Crime Stoppers are both offering rewards for information leading to the arrest of the suspect or suspects involved.
AuctionsNov 12, 2025
‘Mellon Blue’ Diamond Sells for $7M Less Than It Did a Decade AgoA buyer paid $25.6 million for the diamond at Christie’s on Tuesday. In 2014, Sotheby’s sold the same stone for $32.6 million.
