Image credit: Petra Diamonds
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
