Petra Diamonds shares dive after warning of poor earnings and production
29 January 2018 - 11:43
Petra Diamonds said on Monday it expected full-year core earnings to come in about 10% to 15% below consensus, and cut its 2018 production forecast, sending its shares down 15% in early trading. The company, which operates diamond mines in SA Tanzania, said earnings before interest, tax, depreciation and amortisation (ebitda) would be hit by the recent strengthening of the rand. The profit warning comes after a three-week strike at its South African operations and the blocking of a consignment of diamonds in Tanzania that led the company to flag a possible breach of two of its debt covenants in October.
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