Petra Diamonds Ltd (lon:pdl)
Petra Diamonds – Are They Still Going?

Petra Diamonds Ltd Financials

ItemCurrent PeriodPrevious Period
Year20192018
Period6 Months6 Months
Revenue$194m$207m
Earnings
Adjusted Earnings
EBITDA
Adjusted EBITDA
Statutory Profit($10m)($58m)
Adjusted Profit
Total Debt$652m$649m
Net Debt$596m$559m

Commentary History
No ticker supplied in the url so commentary history can not be collected.
Petra Diamonds Ltd Share Price
Grade:The Black Grade - Shares That I Think Could Collapse To Nothing Or Suffer A Massive Share Issue.
Title: Petra Diamonds – Are They Still Going?
Company: PDL - Petra Diamonds Ltd
Share Price Then: 1.8p
Author: Ian Smith
Date: Fri 01 May 2020
Comments: Petra Diamonds have been listed since at least 1998 with peaks around and above 100p, today they are sitting at around 2p.
So should we all be bailing in and hoping for return of 35 times?

Not surprisingly, probably not, you might be able to argue that COVID 19 and low diamond prices are responsible for a drop from around 8p but it seems that this could be the nail in the coffin

In South Africa PDL are now back up to the permitted 50% labour capacity, in Tanzania the mine is on care and maintenance only.

The trouble is that it seems that every time I read a trading update there is a section on debt and how the company needs to borrow some more or reschedule its debt. In the latest trading update they say that they are not making and interest payment due today as they want to retain capital and are trying to reschedule the payment.

From the 2019 H1 report The Group continues to assess its strategic options in relation to the maturity of its US$650 million loan notes in May 2022. and including possible breaches in its EBITDA related covenants for the December 2019 (measured in March 2020),

With a current market cap of around £17m it is pretty clear that nobody is sensing a bargain and buying in.

All this makes me worry that the game might be up for the company fairly soon and as a risky trading share it seems to be trading with a 10% spread.

Yet Peel Hunt had reiterated its buy rating today.
Read Count: 197/10130

Buy/No Buy In A Nutshell
NegativesExisted for far too long for the amount of debt that they have.
Positives Unless there is a lucky layer of expensive stones I can't see a way out.
Initial Review Price1.62p
Last Review Price1.62p
Last Review Date18-Jul-2020
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