Latest news with #PetraDiamonds
Yahoo
2 days ago
- Business
- Yahoo
Hopeful Week For Insiders Who Bought US$1.50m Of Petra Diamonds Stock
Explore Petra Diamonds's Fair Values from the Community and select yours Insiders who bought US$1.50m worth of Petra Diamonds Limited (LON:PDL) stock in the last year have seen some of their losses recouped as the stock gained 46% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$540k since the time of purchase. While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. The Last 12 Months Of Insider Transactions At Petra Diamonds Over the last year, we can see that the biggest insider purchase was by Non-Executive Chair Jose Vargas Gomez for UK£1.1m worth of shares, at about UK£0.27 per share. That means that even when the share price was higher than UK£0.17 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Jose Vargas Gomez was the only individual insider to buy shares in the last twelve months. Jose Vargas Gomez purchased 5.46m shares over the year. The average price per share was UK£0.27. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! View our latest analysis for Petra Diamonds There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying. Insider Ownership Of Petra Diamonds For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Petra Diamonds insiders own 12% of the company, worth about UK£4.2m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing! So What Do The Petra Diamonds Insider Transactions Indicate? The fact that there have been no Petra Diamonds insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Petra Diamonds insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Petra Diamonds. Be aware that Petra Diamonds is showing 3 warning signs in our investment analysis, and 2 of those are a bit unpleasant... Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
3 days ago
- Business
- Bloomberg
Diamond Miner Outlines Refinancing Plans as Debt Maturities Loom
Diamond mining group Petra Diamonds Ltd. has announced a plan to refinance its debt after several months of negotiations with lenders. The UK-listed miner is seeking to extend bank and bond debt coming due in January and March next year, while also looking to raise cash through a rights issue, it said in a statement Friday. The shares soared by the most since September 2020.
Yahoo
3 days ago
- Business
- Yahoo
Petra Diamonds Ltd - Proposed Refinancing with Key Financial Stakeholders
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. THE FOLLOWING ANNOUNCEMENT IS AN ADVERTISEMENT AND NOT A PROSPECTUS OR PROSPECTUS EQUIVALENT DOCUMENT AND INVESTORS SHOULD NOT MAKE ANY INVESTMENT DECISION IN RELATION TO THE ORDINARY SHARES EXCEPT ON THE BASIS OF THE INFORMATION IN THE PROSPECTUS WHICH IS PROPOSED TO BE PUBLISHED IN DUE COURSE. THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION. FOR IMMEDIATE RELEASE. 8 August 2025 LSE: PDL Petra Diamonds Limited ("Petra", "PDL" or the "Company" or, in conjunction with its subsidiaries, the "Group") Proposed Refinancing with Key Financial Stakeholders Introduction Petra has, over the past 18 months, been focused on an internal restructuring that has resulted in a simpler and more streamlined business and operating model. This has included the sale of the Koffiefontein and Williamson mines, multiple labour restructuring initiatives and an optimisation and smoothing of the Group's capital development profiles. On the back of this internal restructuring, the Company has been engaged with certain of its financial stakeholders to refinance the Group's senior secured bank debt facilities (the "Senior Secured Bank Debt") and 9.75% senior secured second lien notes (ISINs XS2289895927 and XS2289899242) (the "Notes"). The Senior Secured Bank Debt and Notes are currently set to mature in January 2026 and March 2026, respectively. As a result of these discussions, the Company has agreed in principle a long-term solution for the refinancing of the Group, subject to shareholder approval, comprising: an extension to the maturity date of the Senior Secured Bank Debt to December 2029 and certain other changes to the terms of the Senior Secured Bank Debt, subject to approval by the lender's credit committee; an extension to the maturity date of the Notes to March 2030 alongside concurrent amendments to the Notes; and a $25 million rights issue at 16.5 pence per share that is to be underwritten by certain existing shareholders (the "Rights Issue"), (together, the "Refinancing"). Vivek Gadodia, interim joint Chief Executive Officer of Petra Diamonds, commented: "We have been working hard to streamline and optimise our business to unlock a compelling long-term value proposition leveraging our two world class assets. On the back of this effort, we are pleased to announce today a path towards refinancing our debt that is due to mature in 1QCY26. We would like to thank all our financial stakeholders who have demonstrated strong support for the business by coming together and agreeing on a bespoke refinancing solution that centres around cash preservation for the business, while also enabling the continued execution of our extension projects at both of our mines. We remain focused on implementing the refinancing as efficiently as possible, while also delivering on our updated business plan." In connection with the Refinancing, the Company is pleased to announce that it has executed a lock-up agreement (the "Lock-Up Agreement") with a working group (the "Working Group") of holders of the Notes and a backstop agreement (the "Equity Backstop Agreement") with certain shareholders of the Company (including The Terris Fund Ltd., SAC, JOSIVAR Sarl and José Manuel Vargas (in his personal capacity)) representing approximately 63% of the Company's existing issued share capital (the "Backstop Providers"). The extension of the maturity date of the Notes and certain other changes to the terms of the Notes described below as part of the Refinancing are intended to be implemented by way of a voluntary consent solicitation process (the "Consent Solicitation"), or, alternatively, through a creditor scheme of arrangement under Part 26 of the Companies Act (the "Scheme") or an alternative transaction structure agreed to in accordance with the terms of the Lock-Up Agreement. Based on the information currently available to the Company and subject to the verification by the information agent under the Lock-Up Agreement, the holders of the Notes (the "Noteholders") who have executed the Lock-Up Agreement (the "Participating Noteholders") hold, in aggregate, approximately 86% of the Notes (by value) (the "Locked-Up Notes"). Noteholders who wish to become Participating Noteholders may do so by executing a deed of accession to the Lock-Up Agreement. Further details regarding how Noteholders may accede to the Lock-Up Agreement can be found below. The execution of the Lock-Up Agreement and the Equity Backstop Agreement mark a positive step forward in the implementation of the Refinancing. Pursuant and subject to the terms of the Lock-Up Agreement, the parties thereto have undertaken to take all actions reasonably necessary in order to implement the Refinancing on the terms set out in the Lock-Up Agreement and to not delay or prevent the implementation of the Refinancing. Further details relating to the terms of the Lock-Up Agreement and the Equity Backstop Agreement are set out below. Notwithstanding the execution of the Lock-Up Agreement and the Equity Backstop Agreement, completion of the Refinancing remains subject to the agreement of customary documentation to implement the Refinancing and the satisfaction of the conditions precedent to the Lock-Up Agreement and the Equity Backstop Agreement, each of which the parties have agreed to negotiate in good faith. Such conditions precedent include (but are not limited to) approval of the requisite shareholder resolutions to implement the Rights Issue and the Refinancing at a special general meeting (the "SGM") of the Company's shareholders (the "Shareholders"), entry into a commitment letter with the provider of the Group's Senior Secured Bank Debt (the "Senior Secured Bank Lender") by no later than 10 September 2025 (or such later date agreed in accordance with the terms of the Lock-Up Agreement), and the requisite percentage of the Noteholders voting in favour of the Consent Solicitation or, for implementation of the Refinancing by way of the Scheme or alternative implementation method, approval of the Scheme or alternative implementation method by the relevant stakeholders and the sanctioning of the same by the court. Further details of these conditions are set out below. Discussions with the Senior Secured Bank Lender The Company is in advanced discussions with the Senior Secured Bank Lender in relation to the terms of the Refinancing as they apply to the Senior Secured Bank Debt and has agreed in principle a non-binding term sheet. The terms of the new senior secured bank facilities will substantially adhere to the existing terms, save for any enhancements that the Senior Secured Bank Lender may require. Execution of a commitment letter is subject to requisite approvals being obtained from the Senior Secured Bank Lender's credit committee. The key commercial terms agreed in principle include (among other things): an extension of the maturity of the R1,750 million revolving credit facility to December 2029; a revised margin, anticipated to be JIBAR plus up to 500 basis points (from the current JIBAR plus 415 basis points); an agreed amortisation profile that will result in a reduction of the R1,750m facility to R1,000m by end of June 2029; an updated financial covenant package to reflect prevailing market standards for facilities of this nature and consistent with the Group's anticipated capital structure following implementation of the Refinancing, including adjustments to the leverage ratio test, the interest cover ratio test, and the minimum liquidity covenant (among other things); updated cashflow protocols and basket limits; and an upfront fee of 75 basis points to be paid over the term of the facility, with the commitment fee of 125 basis points remaining unchanged. The Company anticipates entering into a binding term sheet or commitment letter with the Senior Secured Bank Lender by no later than 10 September 2025. Notwithstanding the agreement in principle between the Company and the Senior Secured Bank Lender, implementation of the Refinancing as it applies to the Senior Secured Bank Debt remains subject to completion of all due diligence (including, without limitation, legal, technical, financial and environmental), transaction structuring, tax structuring, relevant conditions precedent and agreement of all customary implementation documentation. Lock-Up Agreement and Equity Backstop Agreement Terms of the Refinancing The key terms of the Refinancing are as follows: the outstanding principal amount of the Notes will be amended to 96 per cent of the aggregate outstanding principal amount prior to the Refinancing and the maturity date of the Notes will be extended to March 2030; interest on the amended Notes will be payable in cash, issuance of new ordinary shares in the share capital of Petra ("New Shares") or a combination of cash and New Shares, which will be at the Company's discretion; the coupon of the Notes will accrue at a rate of 10.5% per annum if paid in cash, and 11.5% per annum if paid in New Shares (the "PICE Mechanism"). Where the PICE Mechanism is exercised, the number of New Shares to be issued by the Company and allotted to the Noteholders shall be calculated by dividing the relevant coupon amount by the following share prices: (i) in Year 1/FY26, 50p per ordinary share; (ii) in Year 2/FY27, an amount equal to the 12-month volume weighted average price of the ordinary shares in the Company; and (iii) in Year 3/FY28 onwards, an amount equal to 50% of the 120-day volume weighted average price of the ordinary shares in the Company; interest due on 31 December 2025 will be paid based on a blended coupon calculation, such that accrued interest from the last interest payment up to the date on which the Lock-Up Agreement becomes fully effective in accordance with its terms shall be paid in cash at 9.75%, with the balance of the coupon paid in accordance with the terms of the new Notes; the covenants of the Notes will be amended to allow the Group to incur shareholder funding that is contractually subordinated to the Notes for the purpose of funding up to two years' worth of coupon payments on the Notes; Petra will undertake the Rights Issue to raise gross proceeds of approximately US$25 million through the issuance of New Shares at a price of 16.5 pence per ordinary share. The Rights Issue will be underwritten by Backstop Providers; and Petra will also implement an incentivisation plan for the benefit of the management, the Chairman and other senior managers of the Company (the "Incentivisation Plan") of up to 16 million warrants in total, with up to 4 million of warrants for the benefit of the Chairman and up to 12 million of warrants for the benefit of management and senior managers, at a strike price of 50 pence, with one-third vesting at each of completion of the Refinancing, the first anniversary and the second anniversary of completion of the Refinancing and an exercise period of four years from completion of the Refinancing, subject to customary provisions regarding good and bad leaver terms. Overview of the terms of the Lock-Up Agreement As noted above, pursuant to the terms of the Lock-Up Agreement, the parties have given certain undertakings, including: to act in good faith and promptly take all actions (within their power) which are reasonably necessary to support, facilitate, implement, consummate or otherwise give effect to the Refinancing (on the terms outlined above); not to take any action which would be in breach of the Lock-Up Agreement or the terms outlined above or otherwise frustrate, delay or impede the implementation of the Refinancing; in the case of the Participating Noteholders only, to vote in person or by proxy in favour of the Consent Solicitation and/or the Scheme; in the case of the Company, the issuer of the Notes (the "Issuer") and each relevant member of the Group, to exercise any powers or rights available to it in favour of any matter requiring shareholder or board approval in connection with the Refinancing, including holding all relevant shareholder meetings and board meetings and passing all relevant shareholder and board resolutions; in the case of the Company, the Issuer and the Working Group, to promptly enter into good faith negotiations to agree upon the precise terms of, and finalise as soon as reasonably practicable, the documents implementing the Refinancing and to commence the implementation of the Refinancing as soon as reasonably practicable, in accordance with the terms outlined above; and in the case of the Participating Noteholders, not to take enforcement action against the Group. In addition, the Participating Noteholders have agreed to certain "lock-up" provisions which, until the date on which the Lock-Up Agreement terminates, restrict them from transferring any interests in the Notes unless the relevant transferee agrees to be bound by the terms of the Lock-Up Agreement. Noteholders who wish to become Participating Noteholders should contact the Information Agent using the contact information below for details of how to accede to the Lock-Up Agreement. Certain customary termination events apply to the Lock-Up Agreement (some of which are automatic and some of which are voluntary and exercisable by different parties), including (but not limited to) automatic termination on the earlier of the date on which the Refinancing becomes effective and 31 December 2025 (unless otherwise agreed in accordance with the Lock-Up Agreement); material non-compliance with the terms of the Lock-Up Agreement by certain parties; and the failure to satisfy certain conditions of (and to) the Refinancing by the agreed specified dates (including, for the avoidance of doubt, entry into a commitment letter with the Senior Secured Bank Lender by no later than 10 September 2025 (or such later date agreed in accordance with the terms of the Lock-Up Agreement)). Kroll Issuer Services Limited (the "Information Agent") has confirmed to each of the parties that the conditions precedent to the effectiveness of the Lock-Up Agreement (relating to, in particular, the amount of Locked-Up Notes) have been satisfied. Accordingly, the Lock-Up Agreement shall henceforth bind all parties thereto until terminated in accordance with its terms. Overview of the Equity Backstop Agreement The Backstop Providers have entered into the Equity Backstop Agreement to underwrite the Rights Issue at a price of 16.5 pence per ordinary share. The Equity Backstop Agreement is conditional upon the Lock-Up Agreement being in place and not having been terminated. The key terms of the Equity Backstop Agreement provide that each Backstop Provider shall commit (i) to vote in favour of the requisite shareholder resolutions at the SGM to implement the Rights Issue and the Refinancing, (ii) to subscribe for its pro rata entitlement under the Rights Issue based on its existing shareholding; and (iii) only in relation to certain of the Backstop Providers to underwrite those entitlements not taken up by other shareholders (excluding the Backstop Providers). In addition, each Backstop Provider has agreed not to sell, transfer or otherwise dispose or charge all or any of its respective shareholding in the Company until the date on which the Lock-Up Agreement terminates. Fees The Company has agreed a package of fees in order to incentivise engagement and ensure support from key stakeholders as follows: in relation to any Noteholder that validly consents to the Consent Solicitation (or, if applicable, votes in favour of the Scheme), an amount equal to 4 per cent of the aggregate principal amount of that Noteholder's Notes (or such lower amount agreed in writing under the terms of the Lock-Up Agreement), to be paid as an allocation of additional Notes on the completion of the Refinancing (the "Consent Fee"); a work fee offered solely to the members of the Working Group in the form of 48 million warrants in respect of Ordinary Shares at a strike price of 20 pence per share (or such lower number of warrants and/or lower strike price agreed in writing between the Company and the majority of the participating Working Group Noteholders) payable on the completion of the Refinancing (the "Work Fee") (with the number of warrants to be received by each member of the Working Group to be agreed by the members of the Working Group and then notified to the Company in writing); and a backstop fee offered to the Backstop Providers in an amount equal to 10% of the value of the ordinary shares which they commit to underwrite in the Rights Issue (including, only in relation to certain of the Backstop Providers who have committed to underwrite those entitlements not taken up by other shareholders (excluding the Backstop Providers), their pro rata entitlement under the Rights Issue which the Backstop Providers have committed to subscribe for) (the "Backstop Fee") to be paid in ordinary shares. Related Party Transactions JOSIVAR Sarl, an entity that is wholly-owned by José Manuel Vargas, Petra's Chair, José Manuel Vargas (in his personal capacity) and The Terris Fund Ltd., SAC, being a substantial shareholder in the Company, are each a party to the Lock-Up Agreement and the Equity Backstop Agreement. JOSIVAR Sarl is a related party of Petra pursuant to UK Listing Rule 8.1.11R(4) by virtue of being controlled by José Manuel Vargas, who is himself a related party of Petra as a director of Petra while The Terris Fund Ltd., SAC is a related party of Petra pursuant to UK Listing Rule 8.1.11R(1) by virtue of being a substantial shareholder of Petra (JOSIVAR Sarl, José Manuel Vargas in his personal capacity and The Terris Fund Ltd., SAC together, the "Related Parties"). The proposed: amendment and extension of the Notes held by José Manuel Vargas and The Terris Fund Ltd., SAC; payment by the Company of the Consent Fee to José Manuel Vargas and The Terris Fund Ltd., SAC; payment by the Company of the Work Fee to José Manuel Vargas and The Terris Fund Ltd., SAC; in respect of each of the Related Parties, the payment by the Company to them of their respective proportion of the Backstop Fee; and awards under the Incentivisation Plan to José Manuel Vargas only, in each case in the terms set out in the Lock-Up Agreement and Equity Backstop Agreement are considered related-party transactions for the purposes of UKLR 8.2.1R (together the "Related Party Transactions"). In respect of the Related Party Transactions, the Board (excluding the Chairman by virtue of a personal conflict) having been so advised by Peel Hunt LLP acting in its capacity as the Company's Sponsor, unanimously considers the Related Party Transactions are fair and reasonable as far as Petra shareholders are concerned. Next Steps The Information Agent has been engaged by Petra to act as information agent for the Lock-Up Agreement. Noteholders that have not yet signed the Lock-Up Agreement and wish to support the Refinancing should complete and execute an accession deed to the Lock-Up Agreement in their capacity as a Noteholder and provide evidence of their beneficial holdings to the Information Agent. Noteholders should contact the Information Agent on 020 7089 0909 (if calling from the UK) or +44 20 7089 0909 (if calling from outside the UK) or petra@ to access further information relating to the Refinancing and for details of how to accede to the Lock-Up Agreement. Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. The helpline is open between 9.00 a.m. and 5.30 p.m., Monday to Friday excluding public holidays in England and Wales. Please note that the Information Agent cannot provide any financial, legal or tax advice and calls may be recorded and monitored for security and training purposes. Shareholders who wish to the support the Refinancing and underwrite the Rights Issue, including participating in the Backstop Fee, should contact the Company within the next ten business days following the date of this Announcement to request to accede to the Equity Backstop Agreement. The Rights Issue will require the publication of a prospectus and shareholder circular which the Company currently expects to publish in Q4 2025. The Group is targeting the completion of the Refinancing in Q4 2025 and will continue working with the Working Group, Noteholders, the Senior Secured Bank Lender, the Backstop Providers and other stakeholders, as required, to finalise and implement the Refinancing. Closing of the Refinancing will be subject to a number of conditions, approvals and other matters which are required in the near-term, including the negotiation and agreement of full form documentation to reflect the agreement in principle and, where required, shareholder approval. The Company will release further announcements in due course, as appropriate. There can be no guarantee that the Refinancing as contemplated by the Lock-Up Agreement and the Equity Backstop Agreement will be implemented on the terms set out above, and any refinancing of the Group may be on significantly different terms to the ones set forth in this announcement or not be consummated at all. Furthermore, the completion of the Refinancing may take significantly longer than the Group currently anticipates. The information communicated in this announcement is inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR. 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 Robin Storey, General Counsel & Company Secretary. ~ Ends ~ For further information, please contact: Petra Diamonds, London Julia Stone Kelsey Traynor Telephone: +44 (0)7495470187 investorrelations@ Kroll Issuer Services Limited Alessandro Zorza Telephone: +44 20 7089 0909 petra@ Peel Hunt LLP (Sponsor to Petra) Ross Allister / David McKeown / Emily Bhasin +44 (0)20 7418 8900 Kirkland & Ellis LLP (Legal counsel to the ad hoc group of Noteholders) Hannah Crawford +44 20 7469 2079 Herbert Smith Freehills Kramer LLP is acting as legal counsel to Petra in connection with the Refinancing. About Petra Diamonds Limited Petra Diamonds is a leading independent diamond mining group and a supplier of gem quality rough diamonds to the international market. The Company's portfolio incorporates interests in two underground mines in South Africa (Cullinan and Finsch Mines). 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 which supports the potential for long-life operations. Petra strives to conduct all operations according to the highest ethical standards and only operates 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's Ordinary Shares are admitted to the equity securities (commercial companies) category of the FCA's Official List and are admitted to trading on the Main Market of the London Stock Exchange under the ticker "PDL". The Company's loan notes, due in 2026, are listed on EuroNext Dublin (Irish Stock Exchange). For more information, visit Important Notices This announcement is not a prospectus but an advertisement and investors should not acquire any securities referred to in this announcement except on the basis of the information contained in the prospectus expected to be approved by the Financial Conduct Authority in the UK and published by the Company in connection with the Rights Issue in due course (the "Prospectus"). The information contained in this announcement is for background purposes only and does not purport to be full or complete. Copies of the Prospectus, when published, will be available on the Company's website, provided that the Prospectus will not, subject to certain exceptions, be available to certain shareholders in certain restricted or excluded territories. The Prospectus will give further details of the Rights Issue. Any decision to participate in the Rights Issue must be made solely on the basis of the Prospectus to be published by the Company in due course. The information contained in this announcement is for background purposes only and no reliance may or should be placed by any person for any purpose whatsoever on the information contained in this announcement or on its completeness, accuracy or fairness. Recipients of this announcement should conduct their own investigation, evaluation and analysis of the business, data and property described in this announcement. This announcement does not constitute a recommendation concerning any investor's decision or options with respect to the Rights Issue. The information in this announcement is subject to change. Neither this announcement or any other document connected with the Rights Issue has been or will be approved or disapproved by the United States Securities and Exchange Commission, any state securities commission in the United States or any other US regulatory authority, nor have any of the foregoing authorities passed upon or endorsed the merits of the offering of the Securities or the accuracy or adequacy of this announcement or any other document connected with the Rights Issue. Any representation to the contrary is a criminal offence in the United States. This announcement contains statements about Petra that are or may be forward looking statements. All statements other than statements of historical facts included in this announcement may be forward looking statements. Without limitation, any statements preceded or followed by or that include the words "targets", "goals", "should", "would", "could", "continue", "plans", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "estimates", "hopes", "projects" or words or terms of similar substance or the negative thereof, are forward looking statements. Such forward looking statements involve risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Many factors could cause actual results to differ materially from those projected or implied in any forward looking statements. In light of these known and unknown risks, uncertainties, contingencies, estimates and assumptions, the events in the forward-looking statements may not occur or may cause actual results, performance or achievements to differ materially from those expressed by or implied from such forward-looking statements, whether as a result of new information, future events or otherwise. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward looking statements, which speak only as of the date hereof. Petra disclaims any obligation to update any forward looking or other statements contained herein, except as required by applicable law or regulation. Past performance of the Company cannot be relied on as a guide to, or a guarantee or an indication of, future performance. No statement in the announcement is intended to be, nor should be construed as, a profit forecast. This announcement is for information purposes only and shall not constitute or form part of any offer to issue or sell, or the solicitation of any offer to purchase, subscribe for or otherwise acquire, any securities of the Company in the United States (including its territories and possessions, any state of the United States and the District of Columbia) (the "United States" or "U.S."), Australia, Canada, New Zealand, Japan, South Africa or any other jurisdiction where such offer or sale would be unlawful. The securities referred to in this announcement have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or with any securities regulatory authority of any state or other jurisdiction of the United States or under applicable securities laws of Australia, Canada, New Zealand, Japan or South Africa and may not be offered or sold in the United States, except that the Company reserves the right to offer and deliver the Securities to a limited number of persons reasonably believed to be qualified institutional buyers ("QIBs") as defined in, and in reliance on, Rule 144A under the U.S. Securities Act, or pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the United States and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. Subject to certain exceptions the securities referred to herein may not be offered or sold in Australia, Canada, New Zealand, Japan, South Africa or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada, New Zealand, Japan or South Africa. There will be no public offering of the securities referred to herein in the United States. The distribution of this announcement and any proposed offering and/or issue of securities referred to herein in certain jurisdictions may be restricted by law. No action has been taken by the Company that would permit an offer of securities or possession or distribution of this announcement or publicity material relating to securities in any jurisdiction where action for that purpose is required, other than in the United Kingdom. Persons into whose possession this announcement comes are required by the Company to inform themselves about and to observe any such restrictions. Any failure to comply with any such restrictions may constitute a violation of the securities laws of such jurisdiction. Neither the contents of the Company's website nor any website accessible by hyperlinks on the Company's website is incorporated in, or forms part of, this announcement. This announcement does not constitute a recommendation concerning any investor's options with respect to the Rights Issue. The price of shares and any income expected from them may go down as well as up and investors may not get back the full amount invested upon disposal of the shares. Past performance is no guide to future performance. The contents of this announcement are not to be construed as legal, business, financial or tax advice. Each investor or prospective investor should consult his, her or its own legal adviser, business adviser, financial adviser or tax adviser for legal, financial, business or tax advice. No person has been authorised to give any information or to make any representations other than those contained in this announcement and, if given or made, such announcements must not be relied on as having been authorised by the Company or any of its affiliates. Subject to the UK Listing Rules, the Prospectus Regulation Rules, the Disclosure Guidance and Transparency Rules and Market Abuse Regulation, the issue of this announcement and any subsequent announcement shall not, in any circumstances, create any implication that there has been no change in the affairs of the Company since the date of this announcement or that the information contained in it is correct as at any subsequent date. Peel Hunt LLP ("Peel Hunt"), which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for Petra as Sponsor and no one else in connection with the Refinancing and the matters referred to in this announcement. Peel Hunt will not regard any other person (whether or not a recipient of this announcement) as is client in relation to the Refinancing and the matters referred to in this announcement and will not be responsible to anyone other than Petra for providing the protections offered to its clients nor for providing advice to any other person in relation to the Refinancing or any other transactions, arrangements or matters referred to in this announcement. Apart from the responsibilities and liabilities, if any, which may be imposed by the Financial Services and Markets Act 2000, as amended, or the regulatory regime established thereunder, neither Peel Hunt nor any of its affiliates, directors, officers, employees or advisers accepts any responsibility or liability whatsoever for or makes any representation or warranty, express or implied, in respect of the contents of this announcement including its accuracy, completeness or verification or for any other statement made or purported to be made by it, or on its behalf, the Company, the Company's directors or any other person in connection with the Company, the Refinancing or any matter referred to in this announcement and nothing in this announcement is or shall be relied upon as a promise or representation in this respect, whether as to the past or future. Each of Peel Hunt and its affiliates, directors, officers, employees and advisers accordingly disclaims, to the fullest extent permitted by law, all and any responsibility or liability whatsoever, whether arising in tort, contract or otherwise (save as referred to above) which it might otherwise have in respect of this announcement or any such statement.4215776_0.jpeg Sign in to access your portfolio
Yahoo
11-04-2025
- Business
- Yahoo
Petra Diamonds delays sales from Cullinan mine amid US tariff uncertainty
South Africa-active Petra Diamonds has announced a delay in the sale of diamonds from its Cullinan mine in South Africa, citing the need for clarity on the impact of recent US tariffs, which have led to uncertainty in the diamond market. The Cullinan mine is known for producing the largest-ever gem-quality diamond 120 years ago. The mine's Tender 5 sales were initially set to be completed by the end of this week. Petra has chosen to defer the sales of approximately 200,000 carats until the tariff impact becomes clear. The tariffs announced by US President Donald Trump affect a range of US imports, including diamonds, prompting a global business reassessment and sparking fears of a trade war potentially hindering economic growth, reported Reuters. South Africa, a key diamond exporter to the US, is directly impacted by these developments. Petra stated: "We believe this decision will lead to more supportive market prices being obtained for the Cullinan Mine goods." The company has already sold gems from its Finsch mine in South Africa and Williamson mine in Tanzania, before the tariffs were announced. The Finsch and Williamson sales fetched $18m (R350.63m) for 176,000 carats, marking a 9% price increase from Tender 4. Petra has also announced it is engaged in a restructuring plan due to increasing losses amid a prolonged downturn in the diamond market. The company has completed a section 189 retrenchment process as part of its Business Restructuring Plan announced in December 2024. The company is finalising its life of mine reviews, aiming to right-size its cost base. Currently, the Cullinan mine has seen a decline in high-quality diamond production, further complicating Petra's position in the market. The Cullinan mine has faced variability in its product mix, particularly a shortage of gem-quality stones larger than 10.8 carats, affecting revenues and average prices in previous tenders. Excluding Cullinan mine goods, Petra's year-to-date revenue for fiscal year 2025 (FY25) from rough diamond sales stands at $103m, down from $138m during the same period in FY24. Despite meeting cost and capital expenditure targets for FY25, Petra is unlikely to achieve its net free cash flow generation goal due to the Cullinan mine's poor product mix and market volatility. This outlook could change if conditions improve in the next three months. Petra anticipates a normalisation of the product mix as fresh ore from the CC1E project at the Cullinan mine increases. A recent 81-carat, high-quality gem discovery offers prospects for improved average prices in upcoming tenders. In January 2025, Petra entered into an agreement to divest its entire shareholding in Tanzania's Williamson Diamonds Limited to Pink Diamonds Investments for up to $16m (£13m). "Petra Diamonds delays sales from Cullinan mine amid US tariff uncertainty" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Zawya
09-04-2025
- Business
- Zawya
South Africa: Petra Diamonds delays Cullinan Mine tender amid US tariff uncertainty
Petra Diamonds, which has the world's third-largest resource of diamonds, said on Wednesday it had delayed the sale of gems from its Cullinan Mine in South Africa until there was greater clarity around the impact of U.S. tariffs. The company, as part of its periodic tenders, had already sold diamonds from its Finsch mine, also in South Africa, and its Williamson mine in Tanzania before U.S. President Donald Trump unleashed a barrage of tariffs last week. WHY IT'S IMPORTANT These tariffs, applicable on U.S. imports ranging from dental floss to diamonds, have left companies globally scrambling to rethink their business and sparked concerns of a trade war that would stunt economic growth. South Africa is one of the biggest exporters of diamonds to the United States, along with India. CONTEXT Petra, already struggling with widening losses due to prolonged weakness in the diamond market, is in the midst of a restructuring plan. Moreover, the iconic Cullinan mine, from where the largest ever gem-quality diamond was recovered 120 years ago, has been producing fewer high-quality diamonds recently. That has added to Petra's woes when it enters the market to sell diamonds via tenders, which are timed around specific calendar events and to fit with other regional diamond sales. KEY QUOTE(S) "The U.S. tariffs announcement late last week has resulted in considerable diamond market uncertainty," the diamond miner said. BY THE NUMBERS Petra sold 176,000 carats in gems from its Finsch and Williamson mines for a total of $18 million in its fifth tender this year, a 9% jump in average price from the fourth tender. That was despite withdrawing about 200,000 carats of Cullinan material from the latest tender. However, it has made $103 million in sales overall from the first five tenders this year, a 25% drop from the $138 million it made in the first five tenders last year. MARKET REACTION Petra's shares fell 6.1% to 26.3 pence in early trading. (Reporting by Yamini Kalia in Bengaluru; Editing by Savio D'Souza) Reuters
