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Happy with that update. Was priced for the worst imo.
Agree Bluemoon, anything to extend the Petra's lifeline is positive news.
Following Petra's last market update, they have "ALMOST" (subject to certain conditions) have achieved everything that they had set out to do regarding liquidity risks and discussions with their lenders.
On top of that, Petra's Q3 production was in line with expectations during this crisis. The shutdown/50% operation will obviously affect Q4, but that's why it was crucial to reschedule repayments.
A slight uptick in diamond prices should also bring confidence to this sector.
Next update will provide us with operations in SA on COVID19 (currently at 50%) and if back to 100%, a production guidance for 2020.
Next trading update is in July to announce production results up to June and to provide a 2021 production guidance.
No immediate threats for petra anymore assuming that the conditions set out by bondholders are met.
GLA.
Only issue all the second hand diamonds for sale Ayer lockdown. All the engagement rings being sold due to divorce lol
I find this a positive update for a company that is struggling and sp way down.
They just need to get past the COVID issue. Retail is opening all over the world including Uk in a few weeks.
Bought tome which is crucial. This will rise on Monday I believe.
Get a slow rise in revenue, shops opening, suppliers starting to trade again. A slow steady rise in the sp over next few months with no fireworks.
Hi colonel,
The 27% fall in diamond prices was during opportunistic bidding at the beginning of the COVID19 crises (same time as the market crash). I believe it's more the reduced activity in the pipeline due to lockdowns and border closures that's affecting the sales.
Either way a lot of this fall is offset by the USD/ZAR rate
USD/ZAR rate of 17.5 vs 14 is a 25% offset.
All IMO.
Very positive update IMO. Definitely better than I expected.
Summary of Q3 Update:
- Petra aren't burning through cash - $77m cash at bank + inventories
- BEE capital payments in May and November rescheduled. Drawdown conditions agreed. - Forbearance agreement with bondholders - Expiring 31st August (with potential month by month extension, subject to a few conditions)
- Reduced supply of diamonds from major diamond producers
- COVID19 is still a problem to attract buyers/reduced activity of the pipeline (production, sales, cutting, trading, consumers)
- circa. 25k carats worth of high value diamond from Q3 + Q4 inventory to be tendered in June
- USD/ZAR at 17.5.
Looking positive for Petra, but still a long road to recovery.
Good luck to all here!
And ofcourse, DYOR and all IMO.
https://ir.q4europe.com/solutions/petradiamonds/3144/newsArticle.aspx?storyid=14711842
Out now
Could go either way. Often companies get finance to tie them over until better times. If they thought it was a complete bust they would indicate it. But on Facebook they are advertising for staff if they thought it was going belly up:
https://m.facebook.com/story.php?story_fbid=1430901370422169&id=832206703624975
The funding is just to get them through covid. They're sitting on a stock pile of potential diamonds. Investors wont get their money through selling their tractors so they would rather hold on. I dont think, and believe, that it's that gloomy. Let's see.
RNS could come out after market close?
The Q3 trading update for scheduled for late May. Petra hasn't posted an RNS for any delay.
Late May confirmation: https://gyazo.com/c4f5cc3cfeb797abd893c08202c0bde2
Petra Events Calendar: https://gyazo.com/ccfd6caa49a3ecb4c3d6ea92afc99722
Petra's most recent Market Update RNS: https://gyazo.com/cd77bd669edc5d622efbb85a5af5ba71
Any thoughts?