The company’s cash flow generation had been impaired by a combination of factors, which included a strike action in South Africa, a strong Rand, delay in bringing the new plant at Cullinan on stream and an embargo on diamond exports from Tanzania.
Petra chief executive Johan Dippenaar said late last month that the rights issue was in the best interest of its shareholders, positioning the company to reap the benefits of the capital intensive phase by moving the focus to cost efficient production from the new undiluted mining blocks, with a reduced capital spend profile.
Investors were expected to receive five shares for every eight they currently hold at 40 pence each.
The company’s lenders waived covenants for December 2017 and relaxed them for this year’s measurements.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished