Petra Diamonds Share Discussion Threads

[pre] 28/7/2021 10:26

This is 10 times larger in Carat terms than the recent one they sold which was under 40 carats for over $40million, so what will fetch?
Edit:
Thanks niggle

[ddubzy] 28/7/2021 09:27

Another cracking find. How can you trade a share like this when these sort of diamonds can be found at any given time. Did the market know about this find yesterday?

[davethehorse] 27/7/2021 15:48

Pump and dumpers were all over it

[swinsco] 27/7/2021 14:36

Amazed the amount of times it does this where Petra are concerned. Lots of Twitter traders were over this on update day so would explain the profit taking. share price now virtually at pre update.

[chesty1] 27/7/2021 14:21

Looks like after the recent solid update the market is dumping this one back down again.

[argylerich] 23/7/2021 11:24

Agreed jwilkes although we are going to lose a lot of them as shares aren't within their investment parameters. It does potentially give us time to build positions :-)

[jwilkes1] 23/7/2021 11:15

The positive stance re the bondholders though I believe is as follows:

1) they converted debt for shares at a price equivalent to around 3.5p

2) these bondholders have representation on the PDL board with non exec directors

[argylerich] 23/7/2021 11:07

Despite the general positives of debt reduction and the even bigger possible resolution re Williamson, I expect a longer term timescale for share price recovery. We've got to remember that as of the debt consolidation, 90% of shareholders didn't originally want to be!
Am in with a small restarting position though :-)

[demark] 23/7/2021 10:48

do you now agree
the debt has gone up
by $5.4m between 31/03/21
and 30/06/21.

anyway, i have bought four
100k's, and those trades
have triggered flurry of
buys!

[74tom] 23/7/2021 10:28

It's all in the RNS which you can read yourself. However, for the benefit of anyone else that can't be bothered to read, it's simple;

5. Consolidated Net Debt is bank loans and borrowings plus loan notes, less
cash, less diamond debtors and includes the Black Economic Empowerment
guarantees of ZARnil as at 30 June 2021 (ca. US$40.0m (ZAR693.6m) as at 30
June 2020).

CASH

Cash at Bank 30/06 : $173m
Cash at Bank 31/03 : $ $153.8m

Net Movement : Increase of $19.2m

DIAMOND DEBTORS

Diamond Debtors at 30/06 : $38.3m
Diamond Debtors at 31/03 : $2.6m

Net Movement : Increase of $35.7m

LOAN NOTES

Loan Notes at 30/06 : -$347.8m
Loan Notes at 31/03 : -$338.7m

Net Movement : Increase of -£9.1m

BANK LOANS

Bank Loans at 30/06 : -£104.7m
Bank Loans at 31/03 : -£108.4m

Net Movement : Decrease of £3.7m

TOTAL MOVEMENTS :

CASH + $19.2m, DIAMOND DEBTORS +$35.7M, LOAN NOTES $-9.1M, BANK LOANS $3.7M

19.2 + 35.7 - 9.1 + 3.7 = 49.5

NET DEBT AT 30/06 : $241.2M
NET DEBT AT 31/03 : $290.7M

Movement in Net Debt : -$49.5m

Exactly JWilkes, Cash would then have been boosted further by the $40m sale on 12th July. Cash is now likely to be around $250m with the $38m diamond debtor balance received post reporting date.

[jwilkes1] 23/7/2021 10:20

No confusion here , just thought I’d add that further monies have been received post end which materially and positively impacts the balance sheet again. $38m isn’t small fry !


Have a great weekend

[demark] 23/7/2021 10:10

so the market is utterly
confused!

[jwilkes1] 23/7/2021 09:54

Hi 74tom.

It’s better than than in real terms isn’t it ? Did you see the comment also about diamond debtors. Essentially Petra had a tendor at the end of the period which meant they received that cash shortly afterwards. It says “settled”; in the rns. That was for just over $38m!

So isn’t it $49.5m net debt reduction + $40m (blue stone) + $38m for debtors ?

[demark] 23/7/2021 09:28

what was the movement in:

bank loans, borrowings
and loan notes between
31/03/21 & 30/06/21 plse?

[74tom] 23/7/2021 08:48

Why? There is a reconciliation clearly posted at the bottom of the RNS… or perhaps you mean it’s misleading because it doesn’t include proceeds from the $40m diamond find reported before year end but sold in July? So actually it was an $89m net debt reduction? Please clarify in more than 3 half lines if you are capable…

[demark] 23/7/2021 08:30

the narrative "$49.5m debt
reduction in the last qtr",

technically this narrative
is clearly misleading

[davethehorse] 22/7/2021 21:37

What happened at the close?

[demark] 22/7/2021 13:30

74tom,
thanks.

that was a school boy
error from my end!

how did i miss it?
unacceptable!

[74tom] 22/7/2021 13:15

Nope, you're 30% out as for some reason you've decided to omit $173m of cash at bank & $38m of diamond debtors paid after year end...

So the current EV is around $490m / £350m ish

It was £1.2b as recently as 2015 and £700m at the beginning of 2020...

[demark] 22/7/2021 13:03

debt -30/06/21
$347m+$104m=$451m
mkt cap @ 1.95p = $9710*1.95*1.35 = $255m

EV = $451+ $255 = $706m

that sounds about right, does it not?

[swinsco] 22/7/2021 10:51

Yesterdays update was exceptional. Took some.

[davethehorse] 22/7/2021 10:37

Profit takers

[74tom] 22/7/2021 10:21

Professional Traders I'm guessing? It's certainly undervalued, especially as the focus of the improved diamond market is on larger stones, in which Cullinan specialises. FY22 is off to a flyer with the $40m sale and with exceptional stones contributing $60.2m in FY21, it would seem possible PDL could top $100m in exceptional sales this year.

That would bring in a chance of exceeding $500m in revenues, which would see between $150-200m in FCF and net debt brought right down. At that point you would think they would look to refinance the 2026 loan notes, as the 10.5% interest rate is irritating. Considering the loan notes total $336m and unrestricted cash was $156m at 30/06, repaying the lot isn't as fanciful as it would seem, although I suspect they will refinance to a lower level to retain financial flexibility.

Having now completed my research, this has got all of the ingredients of a really solid recovery play.

[ali47fish] 22/7/2021 09:33

pts have nevercome across acronim- what is it please

[davethehorse] 22/7/2021 08:31

PTs moving in