Botswana Diamonds deal with Diamexstrat, Burgundy more extensive than that with Alrosa – Campbell

Botswana Diamonds recently entered into a cooperation agreement with Diamexstrat Botswana and its partner, Burgundy to fund exploration of its prospecting licence assets in the southern African country. Company managing director James Campbell told Rough&Polished's...

01 march 2021

‘By democratizing luxury, lab-grown diamonds are heading towards opening the widest consumer base globally the diamond industry has ever experienced’, asserts Amish Shah, President, ALTR Created Diamonds

A third-generation diamantaire, Amish Shah, President of ALTR Created Diamonds and pioneer of the lab-grown diamond market has never been afraid to challenge the status quo. After gaining experience, through his family business in the diamond industry...

22 february 2021

Debbie Azar: “I believe that natural and laboratory-grown diamonds are two separate products that can complement each other through their unique features and benefits”

GSI is one of the largest gemological organizations in the world with 13 laboratories globally. GSI’s four pillars – integrity, innovation, professional service, and research & education – serve as the backbone of its business and provide a layer of...

15 february 2021

Consumer spending on diamonds exceeds expectations as rough demand outstrips supply – Zimnisky

Consumer spending on diamonds exceeded expectations in the fourth quarter of 2020 and has continued through early 2021, according to a top industry expert. Diamond industry analyst Paul Zimnisky told Rough&Polished’s Mathew Nyaungwa that a multi-year...

08 february 2021

Every crisis creates new opportunities

Pravin Shah has been in the business of diamonds for four decades; his technical expertise and thorough knowledge of the whole diamond manufacturing process sets him apart.
As a director, Pravin Shah is in charge of all the operations at two manufacturing...

01 february 2021

Petra Diamonds not completely out of the woods?

23 february 2021
Image credit: Petra Diamonds

Petra Diamonds says despite a successful restructuring, its forecasts remain sensitive to trading conditions and the impact of COVID-19 may further have a material impact on the group's ability to operate within its covenants.
It said additional funding may be required if South African lender group support fail.
Petra said the support of its noteholders, lenders and shareholders had allowed the group to progress the restructuring of its balance sheet, which is expected to be completed in early March.  
This, it said, is a significant milestone and has not only put Petra on a sustainable footing going forward, but it would also allow the group to focus on optimising the value of its diversified asset base.
Petra said although adequate liquidity was maintained in the first half of the fiscal year 2021, results of the stress testing indicate that in the event of deferral to the tenders or a combination of scenarios such as sustained reduced pricing and production disruption, possible covenant breaches associated with the South African banking facilities may occur in December 2021 and June 2022. 
"Whilst reasonably available mitigating actions, which include cost savings and capital deferrals, are foreseen to address the risk of such a covenant breach, the delivery of such mitigating actions remains uncertain," it said.
"In the event of a breach of covenant, the company would be dependent on the South African lender group continuing to make the facilities available and under certain of the scenarios there would be insufficient liquidity to settle the outstanding South African lender group facilities if required."
"Whilst the South African lender group has indicated its support in recent discussions and ongoing dialogue with the South African lender group will be important during this period, there can be no guarantee that the facilities would continue to remain available in the event of a covenant breach."

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished