Petra Diamonds enjoyed a double-digit surge in its share price today, as the troubled mining group eased investor jitters over its cash strategy.
Fears of a new equity financing plan sent the firms stock value to new lows last week, falling below 10p on Londons Alternative Investment Market (Aim).
Yet the precious
metals and mining groups announcement today that it will not be
considering raising equity drove a 20 per cent spike in its share
Richard Duffy, chief executive of Petra Diamonds, said: “We are executing our plans and delivering to budget as we launch Project 2022. We expect that this will deliver significant incremental cashflow over the next three years, further improve our net debt position and provide us with future growth options.”
Waning demand and increasingly difficult access to credit has hit
the South Africcan-focused group in recent months.
Over the last 12 months Petras share price has crashed by
almost 80 per cent.
Earlier this month the firm posted lower-than-expected revenue and warned that next years production would be slightly lower.