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Market NewsNewsPetra shares take a hit after lower prices at Cullinan

Petra shares take a hit after lower prices at Cullinan

Shares of Petra Diamonds Ltd slid as much as 10 percent on Monday after lower diamond prices at its flagship Cullinan mine and an increase in net debt took the shine off higher half-year revenue, Reuters reported.

The company has been trying to keep a lid on debt after heavy investments and a stronger South African rand had burdened the miner, which pays in rands and earns in dollars, said the Reuters report.

Petra’s net debt jumped to $557.2 million in the six months to Dec. 31 from $538.9 million as at Sept. 30. The company was forced to raise $178 million last May by issuing equity to cut its debt burden, the Reuters report said.

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