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The leaky ship.
Says it all.
Petra Diamonds will host its Annual General Meeting on 14th of November
Total pay for CEO Richard Duffy includes US$580.1k salary
The overall pay is 446% above the industry average
Says all you need to know about this BOD the way they run the company.
It's a complete lifestyle company with zero value to investors .
Keep shorting everyone.
Still worth shorting as it will half again in 6 months !!
When they restructure again all the Bod shoukd be sacked for running this company into the ground again .
Shocking beyond belief and something very dodgy going on here with their diamond sales !!
No transparency at all but then again SA is as corrupt as they come ..
Looks grim
Yep, definitely ducked
I posted several weeks back as the situation looks dire.
I sold some weeks back before it fell further but only just had some time now to leave a message.
This is without question the worse stock I have ever purchased. Lost about 95% of my investment and a lost of £35k. Kept on doubling down to reduce my SP breakeven before being wiped out by the debt to equity restructure which wiped out shareholders. Hindsight is a lovely thing and probably could of stem the losses much sooner and maybe got 50% of my investment back, so lesson learnt the hard way. But in all honesty, my overall feelings are relief as I can finally just move on.
Don't be fooled by the Executive and BOD investor relations and glossy reports. The hard facts this is a sinking ship. Debt is spiralling again despite the debt to equity restructure, all mines seem to have issues with productivity, grade quality, costs, strikes, PR tailing disasters, diamond parcels disappearing, more disputes and so on. Mines are need of capital investment to try and boost revenue all at a time when diamond prices are an issue. Cash is king as they say and this company is certainly not positive.
If you want to keep bankrolling he BOD then go for it but as they say if it 'looks like a duck and sounds like a duck then its probably a duck. And in my opinion this certainly almost a loss-cause. If they turnaround then hats off to them but I am done.
If I had cash or knew how to short this company would be it. But I am just happy to be out and move on.
Good luck to you all.
Bad to worse here
Clearly getting very squeezed, watch out for covenants
I guess you lost your shirt?
Using the Dividend Discount Model, Petra Diamonds fair value estimate is UK£0.40.
So that's 25p then
Only going one way here and that's not a pleasant situation to be in as a shareholder here !!
I did say 35p being the low but as their debt swells to a a controlled situation I will say 0p is on the cards in the next 18months .
How many times has this company been restructured now??
Detoriated by $20m or so in just one quarter
The debt number is dire...from my recollection it's around 100m worse than they anticipated last year. I could check by looking at their 2022, forward outlook but to be honest I cant be bothered. Best case here is they pull to some big stones that hand them a life raft for a year or so but given the degradation in the quality at Cullinan `I wouldn't be hopeful.
When is the next restructuring?
Management should exit asap
Wipe out for shareholders on the cards here again !! Their track record is consistent I'll give them that.
Shocking company run by incompetent BOD ..
Good luck anyone holding this rubbish ???
Get out while you have can ..
Nope !!
40s inbound quicker than I thought??
Bottom is around 35p you were told here first but then again I did say this over 6 months ago ..
The BOD don't care about you here .
And where have all them big stones disappeared to more to the question..
The Terris Fund SPC ups it's holding in PDL to 15.148%. This must be very positive for the S.P. going forward.
Hello 50s !!
This will definitely be visiting 40s before Xmas...
Glad I sold out at 108p as I could see this was going only way .
Growth will only start in 2025 as they stated.
That's if they last that long which at the moment looks it will not ..
Where have the big diamonds all gone 😕. A corrupt country says all you need to know 🤔 .
From the going concern statement, if diamond prices dosent bounced, they are toast.
"However, if the actions taken by the producers to curtail supply and
the recently announced Indian diamond import moratorium do not
result in inventories re-balancing, further extending softer pricing
into CY 2024, and the levers in Management’s control do not fully
cure potential liquidity covenant breaches, additional working capital
funding would be required (subject to our lender’s credit approval
processes). These factors indicate material uncertainties which may
cast significant doubt on the Group’s ability to continue as a going
concern and therefore it may be unable to realise its assets and
discharge its liabilities in the normal course of business. The Financial
Statements do not include the adjustments that would result if the
Group were unable to continue as a going concern"
As I said many months ago this is f00ked and will hit 40s in the next 3 to 4 months!!
They will keep increasing debt untill 2025 .
This company is a lifestyle for the BOD that's all and investors will only lose their shirts here .
Going down the road for another restructuring and wiping out SH again .
Just short this because its the only way to make money here ..
Looks like demand for natural diamond is reaching new lows.
https://www.londonstockexchange.com/news-article/AAL/de-beers-rough-diamond-sales-cycle-8-2023/16153508
Anglo American rough diamond sales value for De Beers' eighth sales cycle of 2023
Anglo American plc announces the value of rough diamond sales (Global Sightholder Sales and Auctions) for De Beers' eighth sales cycle of 2023, amounting to $200 million.
Cycle 7 2023(2)
The provisional rough diamond sales figure quoted for Cycle 8 represents the expected sales value for the period 18 September and 3 October and remains subject to adjustment based on final completed sales.
Al Cook, CEO of De Beers, said: "De Beers reduced its rough diamond availability and made sales of $200 million as the industry's midstream rebalances certain areas of stock accumulation. De Beers will continue to support its Sightholders to help re-establish equilibrium between wholesale supply and demand by providing full flexibility for rough diamond allocations in Sights 9 and 10 of 2023, suspending De Beers Group online rough diamond auctions for the remainder of 2023, and investing an additional $20 million in natural diamond marketing to help drive consumer demand during the holiday season."
We'll reconsidered. My Investment-Case was debt reduction and Cash Flow gereration. Now I'm stranded in a "we gamble on diamond prices to recover". I prefer cash, not inventories. Guess I'll leave.
Certainly not good results - but do not look at net debt in isolation - need to consider stock on hand also as they defer sales .
Not saying it’s rosy but it isn’t dire either
Don't let the fluffy jargon cloud your judgement...these results are terrible which is such a disappointment after such a strong prior financial year. This is the worse since the debt to equity debacle.
Net consolidated debt is up c$177m from $40m just twelve months earlier.
Desperate times I am afraid cannot see any light unless they get super lucky and find some large and coloured diamonds.
Not so bad as it would seem on first sight. We've got plenty diamonds still in our inventory. But I must admit I'd prefer they would keep debt flat and postpone just the sales that are above that range. Anyway the cash position tells that we have enough funds to wait for markets to recover - and to conduct the necessara investments.
Last year was really bad especially when you think of Williamson. Taking that into consideration and assuming Williamson will deliver the usual fancy stones, the report and outlook is o.k. for me.
Sounds alot like dangling a carrot in that RNS right. Big price gains just round the corner so hang in there people ;). im so underwater that ill be following that carrot though! GL all