Petra Diamonds Appoints Joint CEOs Amid $69 Million Loss and Ongoing Restructuring Efforts
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Petra Diamonds Limited (PDL.L), a prominent player in the diamond mining industry, made a significant leadership shift on Monday, announcing the appointment of joint CEOs. This comes after the resignation of Richard Duffy, who left the company “by mutual agreement and with immediate effect.” His departure follows a challenging period for Petra, which reported a substantial loss of $69 million for the six months ending December 2024, compared to a smaller $11 million loss during the same period the year prior.
In light of Duffy’s resignation, Petra has appointed two interim joint CEOs: Vivek Gadodia, who has been serving as the company’s Chief Restructuring Officer, and Juan Kemp, the operations executive overseeing Petra’s prestigious Cullinan mine in South Africa. Both Gadodia and Kemp will take the reins of the company as it navigates through difficult financial terrain.
Petra’s recent half-year loss is primarily attributed to continued weakness in the global diamond market, which has put pressure on the company’s revenues. The market’s downturn has led to a significant increase in Petra’s net debt, which grew from $193 million at the end of June 2024 to $215 million by December 31, 2024. The company also cited the timing of diamond tender sales as a contributing factor to its financial struggles.
Despite the financial setbacks, Petra did see some positive developments. Its operational free cash inflow improved significantly, reaching $16 million by the end of the first half of the year, a notable turnaround from a negative $21 million outflow in the previous period. This positive shift was driven in part by a rigorous cost-reduction program that Petra has been implementing across its operations.
As part of its ongoing efforts to streamline its operations, Petra has been selling off non-core assets. In October, the company sold its stake in the Koffiefontein mine, and in January 2025, it reached an agreement to sell the Williamson mine in Tanzania for approximately $16 million. Following these divestitures, Petra is left with two key assets: the iconic Cullinan mine, known for producing the world’s largest gem-quality diamond over 120 years ago, and the Finsch mine located in South Africa’s Northern Cape province.
Petra Diamonds, which has long been recognized as one of the world’s leading diamond miners, now faces the challenge of navigating through these tough financial times, managing debt, and stabilizing its operations under new leadership. The appointment of the two joint CEOs is seen as a critical step as the company works on restructuring its operations and charting a path toward recovery.