Business
Update re. Bank Facility Covenants
Update re. Bank Facility Covenants.
About this update from Petra Diamonds Limited
RNS Number : 0014T Petra Diamonds Limited 09 October 2017 This announcement contains inside information 9 October 2017 Petra Diamonds Limited ("Petra" or the "Company" or the "Group") Update re. Bank Facility Covenants Petra Diamonds Limited disclosed on 18 September 2017 in its preliminary results announcement for the year ended 30 June 2017 (the "Year") that its compliance with the two EBITDA related maintenance covenant measurements related to its senior debt facilities for the period ending, and as at, 31 December 2017 remains sensitive to changes in diamond prices, exchange rates and expected production from the Group's mines, including total carats and mix. Post Year end, compliance has been placed further at risk due to the labour disruption at three of the Company's South African operations and the uncertainty around the final volume of sales for the Williamson mine in Tanzania in H1 FY 2018. Taking these factors into account, a likely breach of the 31 December 2017 EBITDA covenant measurement ratios has been flagged to the lender group and the Company will remain in regular engagement with them on this matter. Furthermore, the Company's forecasts indicate that the Group retains sufficient liquidity from existing cash resources, operating cashflows and existing facilities to meet its liabilities as they fall due under the forecasts and reasonably possible sensitivities. The Company's 2017 Annual Report and Accounts will be published on 16 October 2017 and will include a going concern statement to this effect. The Company's bank facility covenants are set out at: https://www.petradiamonds.com/investors/fixed-income-investors/banking-covenants/. ~ Ends ~ For further information, please contact: Petra Diamonds, London Telephone: +44 20 7494 8203 Cathy Malins ...
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