Update re. Bank Facility Covenants

RNS Number : 0014T

Petra Diamonds Limited

09 October 2017

 

This announcement contains inside information

9 October 2017

Petra Diamonds Limited

("Petra" or the "Company" or the "Group")

Update re. Bank Facility Covenants

Petra Diamonds Limited disclosed on 18 September 2017 in its preliminary results announcement for the year ended 30 June 2017 (the "Year") that its compliance with the two EBITDA related maintenance covenant measurements related to its senior debt facilities for the period ending, and as at, 31 December 2017 remains sensitive to changes in diamond prices, exchange rates and expected production from the Group's mines, including total carats and mix.

Post Year end, compliance has been placed further at risk due to the labour disruption at three of the Company's South African operations and the uncertainty around the final volume of sales for the Williamson mine in Tanzania in H1 FY 2018.  Taking these factors into account, a likely breach of the 31 December 2017 EBITDA covenant measurement ratios has been flagged to the lender group and the Company will remain in regular engagement with them on this matter.

Furthermore, the Company's forecasts indicate that the Group retains sufficient liquidity from existing cash resources, operating cashflows and existing facilities to meet its liabilities as they fall due under the forecasts and reasonably possible sensitivities. 

The Company's 2017 Annual Report and Accounts will be published on 16 October 2017 and will include a going concern statement to this effect.

The Company's bank facility covenants are set out at:

https://www.petradiamonds.com/investors/fixed-income-investors/banking-covenants/.

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For further information, please contact:

Petra Diamonds, London                                         Telephone: [phone]

Cathy Malins                                                               [e-mail] 

Buchanan                                                                  Telephone: [phone]

(PR Adviser)

Bobby Morse                                                               [e-mail]

Anna Michniewicz                                                       [e-mail]

About Petra Diamonds Limited

Petra Diamonds is a leading independent diamond mining group and an increasingly important supplier of rough diamonds to the international market. The Company has interests in five producing operations: three underground mines in South Africa (Finsch, Cullinan and Koffiefontein), the Kimberley Ekapa Mining joint venture (including the Kimberley Underground mine and extensive tailings retreatment operations) and one open pit mine in Tanzania (Williamson).  It also maintains an exploration programme in Botswana and South Africa.

Petra has a core objective to steadily increase annual production to 5.0 - 5.3 million from FY 2019 onwards. The Group has a significant resource base in excess of 300 million carats.

Petra conducts all operations according to the highest ethical standards and will only operate in countries which are members of the Kimberley Process. 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. For more information, visit www.petradiamonds.com.

 

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