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The Markets
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Pharma & Biotech

Friday's agenda: Petra Diamonds and fallout from the Fed

Petra Diamonds is sticking its head above the parapet in a post Fed-decision world with its full-year results.

Tomorrow could be one of complete overhaul, or ‘as you were’ with the Federal Reserve interest rate decision due on Thursday evening.

With that in mind, the only company scheduled to report on Friday is Petra Diamonds, which will release last year’s full-year figures.

Diamonds have been in the news quite a bit recently, with Gem Diamonds selling a 57 carat type IIa white diamond from Letseng this week for US$19.3mln,

Paragon Diamonds got in on the act this week too, with studies pointing to a significant increase in the size of the diamonds present at its new mine in Lesotho.

With that backdrop, Investec said that Petra has “repeatedly missed targets over the past year”, and guidance provided in July painted a bleak picture.

However, the broker added that if the group can meet its latest targets, Petra’s debt levels look manageable and it should be cash generative from 2018 onwards.

“Petra remains a growth story and, despite continued challenges, has made considerable progress in turning around the long established mines, but we need to see delivery against guidance to turn positive on the story,” Investec added.

Significant announcements expected:

Finals: Petra Diamonds (LON:PDL)

Economic: EU – Balance of payments, Current account, US – Leading indicators.

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