Petra Diamonds installs joint CEOs in board overhaul

[Ben Graham]

Africa-focused Petra Diamonds (LON: PDL) has made its interim leadership permanent and added new board talent as the miner navigates a troubled diamond market.

The company confirmed Vivek Gadodia and Juan Kemp as joint CEOs after they shared the interim role since February, with Gadodia leading corporate strategy and Kemp overseeing operations.

Shareholders also approved the appointment of Kushal Kumar as a non-executive director. Kumar brings more than 30 years of experience in global financial markets, with past roles at Lehman Brothers in London, JP Morgan, Bank of America in Hong Kong and American Express Bank in India. 

Non-executive chair José Manuel Vargas said Kumar’s background strengthens the board as Petra pushes for stability and growth.

“I would like to welcome Kushal to the Board of Petra; we believe his experience and skill set will complement those of our existing Directors as we look to take the company forward,” Vargas said.

Market pains

Diamond miners have faced weak demand, economic uncertainty and growing competition from lab-grown stones, forcing companies to slash costs, pause production and rethink their structure. Petra has struggled to generate sustained cash flow even after asset-streaming efforts. 

Gadodia and Kemp noted they had spent the past nine months building a more resilient business while working through the company’s refinancing. 

Petra Diamonds launches $25M lifeline amid market slump

“We look forward to steering the company on a permanent basis as we continue our focus on the execution of our extension projects as we look to unlock value for our stakeholders in the short to medium term,” they said.

Petra’s shares rose 3% to 18.6p each in late Friday trading in London. The stock is down 38% year-to-date and 41% over the past 12 months, valuing the company at £57 million ($75m).