Petra Diamonds warns of possible breach of lending covenants

LSE-listed Petra Diamonds on Monday warned shareholders it was likely to breach lending covenants at the end of this year owing to labour disruptions at its South African mines and uncertainty around sales volumes from its Williamson mine, in Tanzania. The company last month said two earnings before interest, taxes, depreciation and amortisation-related maintenance covenant measurements related to its senior debt facilities for the period to December 2017 remained sensitive to diamond prices, exchange rates and expected production from its mines.