Skip to content
Home / News |

Petra Diamonds Share Price Surged 35.2%, Here’s Why

PDL Petra Diamonds
Simon Mugo

Shares of Petra Diamonds Limited (LON: PDL) today surged 35.2% higher extending Friday’s gains despite the lack of any major announcements from the diamond mining company.

The company has been seeking a buyer for some of its assets or for the whole business in order to tackle its massive debt load of $650 million as of June 2020.

The lack of bidders has seen the company continue to trade near the all-time lows it hit in March during the global stock market sell-off triggered by the COVID-19 pandemic.

X testing X
WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.
Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.
5.0
Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

The only logical explanation for the 2-day rally that started on Friday and extended into today’s session is that the company might have found a serious buyer and maybe in negotiations at the moment, but this is yet to be confirmed.

Petra Diamonds remains in significant financial trouble given that it has cut its annual production target severally this year. Recent comments by GEM Diamonds CEO Clifford Elphick that they did not have a major acquisition target drove the company’s stock lower.

Petra Diamonds share price

Tradingview chart of Petra Diamonds share price 07092020

Petra diamonds shares surged 35.2% to trade at 2.42p having ended last week’s session trading at 1.79p.

People who read this also read:

Simon Mugo
Simon Mugo
Contributor

Simon ist Autor und Analyst für den Bereich Finanzwesen und blickt auf über sechs Jahre professionelle Erfahrung als Trader zurück. Er absolvierte einen Bachelor in Mathematik und Informatik und hat eine Leidenschaft für die Finanzmärkte. Simon handelt FX, Rohstoffe und Aktien. Er konzentriert sich auf Price Action Trading.