Petra Diamonds Share Discussion Threads

[mapocho] 20/4/2022 15:55

Continue to buy more here. The financials look nuts.

[r88ave] 20/4/2022 13:20

Dare i say market is beginning to see the bargain after slow reaction this am?

[mapocho] 20/4/2022 12:36

Surely got to at least go back to 10p in old money or 500 consolidated. Even then it would be dirt cheap imo. Should be getting a dividend also .. high double digit yield s to come if you buy now.

[swinsco] 20/4/2022 12:25

Good post Tom! It's definitely a buy and hold, this one!

[74tom] 20/4/2022 12:16

Interesting to note that last summer the share price in old money was stuck around 1.8p for months (90p in today's consolidated share price). That gave a market cap of ~£175m / $228m and at 30/06 net debt stood at $241.2m, Diamond debtors were $38.3m, Diamond Inventory $54.3m.

So EV was approx. $228m - $38.3m - $54.3m + $241.2m = $376.6m

Today we have a market cap of £251m / $325m, net debt is $107m, Diamond debtors are nil and diamond inventory is $98.1m.

So EV is now approx $325m - $98.1m + $107m = $334m

Seems completely illogical to me...

Also worth noting that in 2018 the market cap was £650m despite net debt being $557m, deducting diamond inventories of $76m meant EV was around $1.325b, equivalent to ~£5.20 a share.

Much upside to come here.

[r88ave] 20/4/2022 11:16

Quite laughable that the 3rd Q revenue is more than half of the market value of the company

[mapocho] 20/4/2022 11:04

Traders buy the news, funds buy the cash .. give them a few days and someone will notice you can buy 200 million in recurring fcf for a one off fee of 260 million. Pretty much debt free now, too. Say they start paying 100 million in dividends next year would see a yield of over 30%..

Bought a few more today. Should easily double this year.

And a great hedge against raging inflation.

Map

[r88ave] 20/4/2022 08:45

Yeah the results were v positive. Not sure whether the rise in recent weeks has priced in the expected quarter. Time will tell. IMO if it rises above 138p next target would be 160p like someone earlier said.

See what happens later today after 9.30am conference call

Need to see what margin cost is given the rise of energy prices etc

[swinsco] 20/4/2022 08:32

Really outstanding update but poor share price reaction.

[tradingsun1] 20/4/2022 07:31

I remember when these guys were over $700m in debt. Does anyone have any ideas of expectations of pre-tax profit for this year?

I worry about country risk with S Africa and Tanzania being potentially politically volatile.

Im in Shanta Gold which also operates In Tanzania.

Altogether though an excellent update. The less debt the better as we move forward.

[wigwammer] 20/4/2022 07:10

Wow... a $45m reduction in net debt over the quarter, and that is with only a $5m contribution from exceptional stones. With the value of diamond inventories also rising $19m over the quarter, PDL is now almost debt free if we include inventory as a near cash asset.

[mapocho] 17/4/2022 11:27

Could see this 160 come the trading update on 20th ..

[mikeh30] 14/4/2022 07:50

It is cheap. Recovery play

[mendo] 14/4/2022 00:32

Could please someone explain me why does this stock (look) so extremely cheap? Am I missing something, as I
unfortunately only watch it for several months. Even now it looks extremely cheap at P/CF of only 2.16 and P/E of only 1? Is there any large potential dillution ahead, any large outstanding legal battle, some murkiness around anything important...?

[raleigh43] 13/4/2022 13:02

Invesco sold half their holdings in PDL

[king suarez] 09/4/2022 10:02

Yes, I foresee PDL starting to pay decent dividends soon. That said there is quite significant capex planned in the next few years at the mines if you check out the latest presentation - all this to increase mine life (opening up new mine areas) and to improve efficiencies and production a bit..

[mapocho] 09/4/2022 09:52

Interesting to note that pdl is expected to generate over 200 million in fcf come end of June .. that's almost its market cap. At that rate debt of 150 million can be wiped out next year. So debt free and fcf of perhaps 300 million given diamond prices. Some juicy dividends coming down the line imo..

[mapocho] 08/4/2022 08:30

And I see a few hours ago the US have imposed sanctions on Alrosa ...

[mapocho] 04/4/2022 07:51

I noted this comment from Botswana diamond results:

'The diamond market has seen a rapid and dramatic recovery in recent months with prices rising by upwards of 40%. Pent up demand and reductions in supply have led to this rise. If sanctions impact on the supply from Alrosa, the world's biggest producer then prices will rise further. The increased demand has come from across the world and in most if not all categories of diamonds'

[swinsco] 31/3/2022 12:46

Still holding these whilst, understandably, some taking profits. More to come, me thinks.

[king suarez] 28/3/2022 16:36

Don't know - looks like they've gone a bit mental when you read the transaction history there?!

22 March

Buy 5.889544% of the company

23 March

Sell ALL holdings

24 March

Buy 6.251602% of the company

25 March

Sell ALL holdings

WTF are they playing at exactly?

[richie32] 28/3/2022 16:31

Anyone know why Bank of America keeps buying and selling a large holding every 3 minutes!?

[raleigh43] 28/3/2022 14:35

Took some today. Great stockopedia rankings and looks set to break out.

[mapocho] 28/3/2022 14:31

Should get the revenue from that final 20% of the sales report in the next few days. Some big blue diamond finds very likely, too. My target here is back to 500 or around 12p in old money...

[king suarez] 28/3/2022 14:13

Too much debt, due to capex spending on the mines at a time when diamond prices were lower, due to Covid - causing a debt for equity swap with bond holders at a price that all but destroyed private investors at the time.

Different proposition now with residual debt on track to be extinguished within 12 months or so, strong cash flow and rising diamond prices.