Petra Diamonds Chief Executive Steps Down as Share Price Tumbles 17%

The sudden departure of Petra Diamonds’ chief executive has sent shockwaves through the mining sector, with shares plummeting 17.2 per cent to 24p following the announcement. Richard Duffy, who had led the company since 2019, resigned “by mutual agreement and with immediate effect”, though no specific reason was provided for his exit.

The timing of this leadership change comes at a crucial moment for the South African diamond mining organisation, which operates the prestigious Cullinan and Finsch mines. The company currently faces significant challenges, including ongoing refinancing discussions regarding its $215 million net debt position as of December’s end.

House broker Peel Hunt’s analyst Peter Mallin-Jones expressed concern over the resignation, noting Duffy’s instrumental role in transforming Petra’s corporate culture during his tenure. The announcement overshadowed the company’s half-year results, which revealed revenues of $115 million, down from $164 million in the comparable period.

In response to the leadership vacuum, Petra has appointed Vivek Gadodia and Juan Kemp as joint interim chief executives. Gadodia, previously chief restructuring officer, will oversee corporate matters, while Kemp, former operations executive at Cullinan mine, will manage group operational responsibilities.

The company’s challenging position reflects broader industry pressures, with diamond demand weakening and prices falling. Petra’s share value has deteriorated by more than 90 per cent over the past five years, highlighting the significant hurdles facing the new leadership team as they attempt to stabilise the business and secure its financial future.