Petra Diamonds Likely to Breach Loan Covenants

Petra Diamonds, owner of five African diamond mines, said it was likely to breach two EBITDA-related bank covenants by the end of the year.

The company said labor disruptions at three of the country’s South African operations, as well as a dispute with the government in Tanzania over sales at its Williamson mine  (pictured), would likely hit earnings, leading to the breach.

The miner said it had flagged the possible breach to its lender and remains in regular engagement with it.

“[Petra’s] forecasts indicate that the group retains sufficient liquidity from existing cash resources, operating cash flows, and existing facilities to meet its liabilities as they fall due,” a statement said.

 

JCK News Director

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