30th Nov 2015 15:24
LONDON (Alliance News) - Petra Diamonds Ltd said its lender group has agree to waive the measurement of two covenant tests related to consolidated earnings before interest, tax, depreciation and amortisation for the period to, and as at, December 31.
The lender group, which includes Absa Bank Ltd, FirstRand Bank Ltd and Nedbank Ltd, has advised the company it remains "very supportive" of it, and its expansion plans.
"The agreement of our lender group to waive the measurement of the December 2015 EBITDA-related financial covenants validates its support of Petra's business and its strategy. Petra remains focused on maintaining a healthy balance sheet to enable it to successfully conclude its expansion programmes, which remain on track with the majority of work having already been completed," said Chief Executive Officer Johan Dippenaar in a statement.
The company said it remains well financed for the completion of its capital expansion programmes. Further increases in production and a reduction in capital expenditure from its financial year 2017 are expected to see its net debt return to lower levels, it said.
Shares in Petra were up 3.0% at 60.00 pence Monday afternoon.
The stock spiked on Friday last week after the company said it had recovered a 23.16 carat pink diamond of "exceptional colour and clarity" from its Williamson mine in Tanzania. Petra said this is the "most significant recovery" from the mine to date.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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