Petra Diamond Prices Down 27 per cent in "Unprecedented Trading"

(IDEX Online) - Petra Diamonds saw prices for its rough stones fall 27 per cent in February, compared with the same month last year, as coronavirus brought its mining operations to a halt.

The UK-listed firm has put its Williamson mine in Tanzania on care and maintenance from the middle of April, and government lockdowns on its Finsch, Cullinan and Koffiefontein mines in South Africa will be reviewed on 16 April.

Petra sold only half the diamonds, by value, at its February sale and withdrew large diamonds (over 10.8 cts) and parcels of other sizes and qualities totalling over 24,000 cts.

It blamed "experienced depressed and opportunistic bidding" and said tenders planned for May and June remain under review, given travel restrictions because of coronavirus.

The company also said it was closely monitoring its liquidity risk, and had drawn down on its working capital facility of 500m rand ($27.5m).

Richard Duffy, CEO of Petra Diamonds, said: "Given the unprecedented trading conditions, we are taking all steps necessary to preserve the Company's liquidity position in order to withstand this very difficult period until market conditions improve.

"We remain committed to protecting the ongoing viability of our operations, to the benefit of all our stakeholders."