Last checked at 16 Sep 2020 09:57
Petra Diamonds Ltd - Recovery of Five High Quality Blue DiamondsPetra Diamonds Ltd - Recovery of Five High Quality Blue Diamonds
PR Newswire
London, September 16
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FOR IMMEDIATE RELEASE
| 16 September 2020 | LSE: PDL |
Petra Diamonds Limited
(“Petra”, “the Company” or “the Group”)
Recovery of Five High Quality Blue Diamonds at the Cullinan Mine
Update on Discussions with Financial Stakeholders
Petra Diamonds Limited announces that it has recovered five Type IIb blue diamonds of high quality in terms of both their colour and clarity at the Cullinan mine in South Africa. The diamonds are also significant in terms of their size, being 25.75, 21.25, 17.57, 11.42 and 9.61 carats, and are assessed to be individual stones and not originally part of one larger diamond.
Blue diamonds are so rare that there are no official statistics on their recovery, however the Cullinan mine is known as the world’s most important source. The last blue diamond of significance was recovered a year ago at the mine in September 2019 and it is therefore even more unusual to recover five high quality stones around the same time, all in the space of one week’s production.
Given the challenges presented by the COVID-19 pandemic, the Company is maintaining a flexible approach to sales. It is therefore still evaluating the optimal route to market for the stones and the Company will release further information to its customer base on the marketing plan in due course.
Petra continues to undertake discussions with the Ad Hoc Group of holders of the Group's Senior Secured Second Lien Notes (“AHG”) and also with the South African lender group regarding a long term solution to improve the Group's capital structure. The Company will make a further announcement in relation to these discussions in due course. While the Company continues to have constructive engagement with the AHG and the lender group, there can be no certainty that these discussions will result in agreement being reached.
In addition, these finds, whilst a positive development, will not have a material impact on the likely terms of the required long term solution to improve the Group's capital structure, nor the significant level of equity dilution that existing shareholders are likely to experience in connection with its implementation.
Photos of the blue diamonds can be viewed at www.petradiamonds.com/media/image-library/diamonds and further information on the heritage of the Cullinan mine and its diamonds can be found at https://www.petradiamonds.com/about-us/our-heritage/.
For further information, please contact:
| Petra Diamonds, London | Telephone: +44 20 7494 8203 |
| Cathy Malins | investorrelations@petradiamonds.com |
| Marianna Bowes | |
| Des Kilalea |
The information contained within this announcement is considered by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information will be considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of the Company is Jacques Breytenbach, Finance Director.
About Petra Diamonds Limited
Petra Diamonds is a leading independent diamond mining group and a consistent supplier of gem quality rough diamonds to the international market. The Company has a diversified portfolio incorporating interests in three underground producing mines in South Africa (Finsch, Cullinan and Koffiefontein) and one open pit producing mine in Tanzania (Williamson).
Petra's strategy is to focus on value rather than volume production by optimising recoveries from its high-quality asset base in order to maximise their efficiency and profitability. The Group has a significant resource base of ca. 250 million carats, which supports the potential for long-life operations.
Petra conducts all operations according to the highest ethical standards and will only operate in countries which are members of the Kimberley Process. The Company aims to generate tangible value for each of its stakeholders, thereby contributing to the socio-economic development of its host countries and supporting long-term sustainable operations to the benefit of its employees, partners and communities.
Petra is quoted with a premium listing on the Main Market of the London Stock Exchange under the ticker 'PDL' and is a constituent of the FTSE4Good Index. The Company’s US$650 million loan notes due in 2022 are listed on the Global Exchange market of the Irish Stock Exchange. For more information, visit www.petradiamonds.com.