| Petra Diamonds warns on profit, cuts output view; shares slump | |
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(Reuters) - Petra Diamonds Ltd (PDL.L) said on Monday it expects full-year core earnings to come in about 10 percent to 15 percent below consensus and cut its 2018 production forecast, sending its shares down 15 percent in early trading. The company, which operates diamond mines in South Africa and Tanzania, said earnings before interest, tax, depreciation and amortization (EBITDA) to be hit by the recent strengthening of the South African rand. The profit warning comes after a three-week strike at its South Africa operations and the blocking of a consignment of diamonds in Tanzania that led the company to flag a possible breach of two of its debt covenants in October. Petra, which had a net debt of about $644.7 million as of Dec.31, said on Monday it started formal discussions with its lenders to evaluate the covenants. The London-listed company said it expects to produce 4.6-4.7 million carats (mcts), below its previous forecast of 4.8-5.0 mcts, primarily due to lower grade diamonds recovered from its Cullinan mine in South Africa. However, revenue per tonne is expected to be materially in line with estimates, helped by higher average diamond prices. It expects overall 2018 revenue to remain in line with current consensus, including the expected sale of the blocked consignment of diamonds in Tanzania. As part of a wider crackdown in its mining industry, Tanzania blocked the consignment after accusing Petra of under-declaring the value of the stones by about half. Petra has denied the accusation.
(Reporting by Arathy S Nair in Bengaluru; Editing by Saumyadeb Chakrabarty) |
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Petra Diamonds Ltd
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PRODUCER |
CODE : PDL.L |
ISIN : BMG702781094 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Petra Diamonds is a diamonds producing company based in United kingdom. Its main assets in production are WILLIAMSON (MWADUI MINE) in Tanzania and KOFFIEFONTEIN, CULLINAN, FISSURE MINES (HELAM, SEDIBENG, STAR), STAR MINE, SEDIBENG MESSINA & DANCARL and HELAM MINE in South Africa, its main asset in development is KIMBERLEY UNDERGROUND in South Africa and its main exploration property is KALAHARI in Botswana. Petra Diamonds is listed in Australia, in Germany and in United Kingdom. Its market capitalisation is GBX 23.8 billions as of today (US$ 27.8 billions, € 26.0 billions). Its stock quote reached its lowest recent point on March 27, 2020 at GBX 0.70, and its highest recent level on July 29, 2022 at GBX 99.94. Petra Diamonds has 531 986 000 shares outstanding. |