Petra Diamonds Share Discussion Threads

[ukgeorge] 23/7/2019 09:16

Thanks Max

[mad_ max] 23/7/2019 08:32

" The Company generated net free cash of $17 million in H2 FY 2019 adjusted for diamond debtors, after repaying US$20 million against BEE debt and US$23.6 million in bond coupon payments".

From their conference call....confirming that the prudent forecast for 150/200 mln 2022 net Fcf is based on facts...

[mad_ max] 23/7/2019 00:18

UkGeorge...in order to be clear ..I just connected to the complete recorded conference call..and one question was related to the bonds due 2022...and the management said that they have different options open and they will keep posted investors but more than that...and MORE important.they said that ..the 150 / 200 mln Fcf..they forecast is NET Fcf..clearly stating.that is AFTER debt servicing...it was the last question made by an analyst at Beremberg if I am correct...

[mad_ max] 22/7/2019 19:10

The bonds mature in May 2022....so in three years time..no short term problem. They have three years to implement the plan..production etc etc. They have untapped credit with different south African banks...with new more flexible covenants. They can in part repay debt using internal fcf...they can issue in 2021 new bonds different maturities in order to repay the 2022 or can also issue some new shares..or doing both. This company will not go bust..the institutional shareholders and the old founders could also push for a merger with...some big name in the space willing to take control of some historic iconic mines..
Angko american de beers...ao Arosa or the smaller but with no debt Lucara...

[jordanhen] 22/7/2019 18:36

Should I sell my stock, is it not good that they are chipping away at their debt?

[ukgeorge] 22/7/2019 17:18

Thanks Max,

So interest payments of $40.6M each year.

[mad_ max] 22/7/2019 17:07

The coupon on the 520mln bond may 2022 is 7.25%...

[plentymorefish] 22/7/2019 16:55

Closed at an all time low. I think the penny is beginning to drop here. Falls should accelerate from here and a few lessons learned, no doubt.

[ukgeorge] 22/7/2019 16:43

$560M debt
FCF target of $150M-200M over the next 3 years.

I think the debt has interest rates of around 8%, (not 100% on the %)

If it is 8% that is interest of $44M each year.

Suddenly that $150M FCF is gone.......

[plentymorefish] 22/7/2019 16:42

Which IIs' are selling, that is the question?!

[plentymorefish] 22/7/2019 16:41

Reported, not actual....

[mad_ max] 22/7/2019 16:34

Less than 1% of total mkt cap traded...today on a reporting day ...

[plentymorefish] 22/7/2019 16:10

Looks like shorts opening, this could start to get really grim (for longs)!

[plentymorefish] 22/7/2019 16:08

Closing in on the all time low. Once that goes.....game on....

[lukehold] 22/7/2019 13:43

Heh I'm still here, I didn't think it was this low, ppl wanted to see debt chipped away at. I'll be topping up

[bennigoal1] 22/7/2019 12:49

Read all the stuff published on their site.
It is a big buy at these levels.
150 200 mln fcf in the next three years. Reducing net debt. Lower capex 29mln in 2020. Another big stone found at cullinan after end of fy 30th June. 132 cts. Avg prices at cullinan strongly increasing in second half 2019 testifying the increase of big stones On the technical side: strongly oversold Rsi below 30. Third day out of bollinger bands.

[plentymorefish] 22/7/2019 11:11

Even Lukehold has seen the light....

[plentymorefish] 22/7/2019 11:10

The chart looks good though....oh, hang on a minute, I was looking at it upside down!

[ukgeorge] 22/7/2019 11:03

Some will need to bail as the mkt cap falls below what they are allowed to invest in. Too much debt, too slower ramp up.

The only potential positive is buying into the company that ends up owning the assets after petra has gone bust.

[plentymorefish] 22/7/2019 10:59

Lol....look at the order book, could we really see 14p today? Starting to get very interesting, I’m presuming an II is exiting

[plentymorefish] 22/7/2019 08:12

Stipary point now gone. Next stop 16p....

[mad_ max] 19/7/2019 12:01

That's why they are continuing recruiting personnel at various level of responsibility....

[ukgeorge] 19/7/2019 11:58

Max the company is bust.