Petra Diamonds appoints two CEOs as it battles widening losses

Petra Diamonds Appoints Joint CEOs Amid Rising Losses

(Reuters) -Petra Diamonds on Monday said it has appointed joint CEOs to replace Richard Duffy, who has resigned "by mutual agreement and with immediate effect" amid a wider loss of $69 million for the half-year to December 2024.

The diamond miner said in a statement it has appointed Chief Restructuring Officer Vivek Gadodia and Juan Kemp, the operations executive at its Cullinan mine in South Africa, as joint CEOs on an interim basis.

Petra on Monday reported a wider loss of $69 million in the six months to December 2024, compared to an $11 million loss during the same period previously, on the back of a prolonged period of weakness in the diamond market.

Its net debt increased to $215 million as of December 31, from $193 million at the end of June 2024 due to diamond market weakness and the timing of tender sales.

Petra's operational free cash inflow improved to $16 million at the close of the first half, compared to a negative $21 outflow previously, following a cost reduction programme.

The company has been restructuring its operations to cut costs and sold its interest in Koffiefontein last October. In January, it also agreed the sale of the Williamson mine in Tanzania for about $16 million.

This leaves Petra with the iconic Cullinan mine, where the largest ever gem-quality diamond was recovered 120 years ago, and the Finsch mine in South Africa's Northern Cape province in its portfolio.

(Reporting by Nelson Banya; Editing by Tom Hogue and Christian Schmollinger)