Rocky ride for Petra Diamonds as rand rise sparks profit alert

Shares in Petra Diamonds lost their sparkle on Monday after the miner, which has been grappling with an export ban in Tanzania, warned on profits.

The firm said full-year underlying earnings could be between 10% and 15% below the £256.9 million analysts had forecast, blaming the recent rise of South Africa’s rand.

The London-listed miner also cut its forecast for diamond production.

The update drove shares down 9.27p — or more than 11% — to 69.48p.

Its warning comes after a difficult six months to December 31. During the period, Petra halted production at one of its sites after the Tanzanian government blocked the export of a parcel of diamonds, as part of a wider industry crackdown. The consignment remains blocked.

In October, Petra flagged up that it would possibly be in breach of two of its debt covenants and today it said discussions with lenders are under way.

Full-year revenues are expected to be in line with City forecasts.