Petra Diamonds Credit Report

07 March 2019

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Petra Diamonds, the South African diamond miner, released its 1H19 results on 18 February 2019. The company was downgraded to B- by S&P on 26 February. Petra’s cash flows and liquidity remain weak, despite a USD 170m rights issue in June 2018. On the back of this, it is likely that Petra will not meet covenants under its banking facilities (undrawn at end- December 2018) that are due to step down from 30 June 2019. Petra has appointed former gold miner Richard Duffy, as its new CEO, effective 1 April, with hopes that he will aid the group’s transition from a heavy capex period to a more cash-generating business.