Latest Updates On Petra Diamonds And SThree Plc

Petra Diamonds Ltd 

Petra Diamonds Ltd (PDL) is a Jersey, United Kingdom-based diamond mining group. The group specialises in the exploration, mining and sale of rough diamonds, and has one of the world’s largest diamond resources. The company’s operations are differentiated in two operating segments: Mining and Exploration.

Trading Update for FY19 released on 22 July 2019

The company’s Lost Time Injury Frequency Rate stood at 0.21 for FY19 as against 0.23 in FY18. The company’s full-year production stood at 3.87 Mcts for the period, which is in line with the expectations, and was higher than FY18 (3.84 Mcts). The company’s ROM production stood at 3.76 Mcts for the period as against 3.65 Mcts in FY18. The company’s surface tailings production stood at 0.11 Mcts for the period as against 0.19 Mcts in FY18. The company received proceeds of US$15 million from sale of the quality diamond (425.1 carat D colour Type II gem), there were four gem- quality stones (+100 carat) recovered during the year from the Cullinan Mine. Also, the company recovered a stone (132 carat D colour Type II gem quality) from the Cullinan Mine post period. The company’s annual turnover plunged by 6 per cent to US$463.6 million during the period as against US$495.3 million in FY18, due to a weaker diamond market scenario. A reduction of 5 per cent per carat was observed in realised prices, which was in line with a market scenario during the period. The company’s Operational Capex (excluding capitalised borrowing costs) stood at US$81.7 million for the period as against US$129.6 million in FY18, which was in accordance with the management expectations. The net free cash of the company stood at $17 million in H2 FY19, factored for debtors, post repayment of BEE debt (US$20 million) and making bond coupon payments of US$23.6 million. The company’s net debt stood at US$560.5 million as on 30 June 2019. The BEE partners (South African lenders) have now restructured the repayment schedule of the debt, the balance payment will be spread across the time frame till November 2021 with US$5 million due in November 2019. In addition, the company will pay the remaining balance in four equal bi-annual instalments of US$12.3 million each starting from May 2020.

The company also issued guidance for FY20. The annual production is expected at 3.8 Mcts. The company’s ROM production is expected to be same as in FY19 (3.75 Mcts), while the tailings production is expected to go south to 0.05 Mcts as against 0.11 Mcts in FY19. The new establishments (underground block cave and sub-level caves at Cullinan, Finsch and Koffiefontein) will facilitate and enhance ROM production. The company’s Capex is expected to be US$43 million in FY20, more capital infusion might be required by the company in the short-term to generate cash.

Financial Highlights (H1 FY2019, US$ million)

In the first half of FY 2019, production increased by 10% to 2,019,147 carats. Driven by a 15% increase in sales volumes, revenue increased by 8% to $207.1 million during the period. Due to lower rough diamond prices and a rise in mining costs, profit from mining activities was down by 7% to $80.1 million in H1FY2019. Adjusted EBITDA decreased by 6% to $75.6 million, resulting in a decline in adjusted EBITDA margin from 42% in H1 FY18 to 36% in H1 FY19Net loss after tax reduced to $57.9 million, while basic loss per share was reported at 6.57 US cents H1 FY 2019, against a loss of US 15.92 cents reported in H1 FY 2018.

Share price performance

Daily Chart as at July-23-19, before the market close (Source: Thomson Reuters)

At the time of writing (as on July 23, 2019, at 08:48 AM GMT), shares of Petra Diamonds were quoting at GBX 16.6 per share; up by 1.09 per cent against the yesterday’s closing price level. The company’s market capitalisation (outstanding) stood at £142.38 million.

In the last 52-weeks, shares of Petra Diamonds have registered a high of GBX 49.00 (as on Jul 23, 2018) and a low of GBX 16.30 (as on Jul 22, 2019). At the current trading level, as quoted in the price chart, its shares were trading 66.12 per cent below the 52-week high price level and 1.84 per cent above the 52-week low price level.

The stock’s volume (before the market close, at the time of writing) stood at 374,513. Stock’s average traded volume for 5 days was 3,716,150.40; 30 days- 2,541,913.17and 90 days – 5,394,312.01.

The average traded volume for 5 days surged by 46.20 per cent as against 30 days average traded volume. The company’s stock beta was 0.58, reflecting lower volatility as compared to the benchmark index.

The shares of the company (at the time of writing) were trading below the 30-days and 60-days SMA, which shows a negative trend in the stock price movement and could further move down from the current trading levels.

In the past 1 year, shares of Petra Diamonds have delivered a negative price return of 67.16 per cent. Also, on a year-to-date basis, the stock was down by approximately 56.42 per cent and plunged by 7.70 per cent in the past three months.

Share’s RSI for the 30-days, 14-days and 9-days stood at 36.37, 26.00 and 17.47 respectively. Also, the stock’s 3-days RSI stood at 2.65. The volatility of the stock for 200 Days, 90 Days, 30 Days stood at 60.38, 60.09 and 46.03 respectively.

 

SThree Plc 

SThree PLC (STHR) is a London, the United Kingdom-based international staffing company. The company offers expert recruitment services in the STEM (science, technology, engineering and mathematics) industries. The group offers contract and permanent staff to diversified sectors, including banking and finance, energy, life sciences, engineering, and ICT (information and communication technology). The company’s staffing business is differentiated in four segments: Continental Europe, Asia Pacific & Middle East (APAC & ME), the United Kingdom & Ireland (UK&I), and the USA. The group also offers resources to support its products with contractor services.

 

Financial Highlights for (H1 FY19, £ million)

The company’s revenue surged by 10 per cent based on CER (constant exchange rate) to £653.3 million in First half of the financial year 2019 as against £585.9 million in First half of the financial year 2018. The revenue increased by 12 per cent on the AER (Actual Exchange Rate) basis for the period.

The adjusted PBT (Profit before tax) stood at £24.0 million for the H1 FY2019 versus £20.3 million in H1 FY2018, reflecting an increase of 18 per cent on Year on Year basis.  The adjusted PBT excludes costs related to management changes and rearrangement of support functions to Glasgow of £1.3 million for the period.

The company’s reported PBT (Profit before tax) was up by 27 per cent to £22.7 million in H1 FY2019 from £17.8 million in H1 FY2018.

The company’s adjusted operating profit conversion ratio surged by 1.4 percentage points to 15.1 per cent in H1 FY2019 as against 13.7 per cent in H1 FY2018. The company’s reported operating profit conversion ratio surged by 2.2 percentage points to 14.3 per cent in H1 FY2019 from 12.1 per cent in H1 FY2018. The increase was driven by improvement in operational efficiencies due to restructuring changes.

The company proposed a half-yearly dividend of 5.1 pence in H1 FY2019 versus 4.7 pence in H1 FY2018. The proposed dividend would be amounting to nearly £6.7 million for the period.

The company’s adjusted operating cash flow stood at £12.0 million in H1 FY2019 as against £7.5 million in H1 FY2018. With lower spending on IT infrastructure and office moves, the capital expenditure declined to £1.2 million in H1 FY2019 from £3.1 million in H1 FY2018.

The company’s international business generated a net fee of 86 per cent for H1 FY2019 versus 82 per cent in H1 FY2018. The company’s net fees from contract stood at 74 per cent for the first half of the financial year 2019 versus 72 per cent for H1 FY2018. The company’s sales headcount surged by 12 per cent on year on year basis, while the average sales headcount was up by 7 per cent on a YoY basis.

 

 

Share price performance

Daily Chart as at July-23-19, before the market close (Source: Thomson Reuters)

At the time of writing (as on July 23, 2019, at 09:08 AM GMT), shares of SThree PLC were quoting at GBX 279 per share; up by 0.35 per cent against the yesterday’s closing price level. The company’s market capitalisation (outstanding) stood at £364.84 million.

In the last 52-weeks, shares of SThree PLC have registered a high of GBX 393.50 (as on Oct 08, 2018) and a low of GBX 245.00 (as on Dec 28, 2018). At the current trading level, as quoted in the price chart, its shares were trading 29.09 per cent below the 52-week high price level and 13.87 per cent above the 52-week low price level.

The stock’s volume (before the market close, at the time of writing) stood at 5,574. Stock’s average traded volume for 5 days was 209,267.00; 30 days- 105,848.53 and 90 days – 105,506.36.

The average traded volume for 5 days surged by 97.70 per cent as against 30 days average traded volume. The company’s stock beta was 0.56, reflecting lower volatility as compared to the benchmark index.

The shares of the company (at the time of writing) were trading below the 30-days and 60-days SMA, which shows a negative trend in the stock price movement and could further move down from the current trading levels.

In the past 1 year, shares of SThree PLC have delivered a negative price return of 20 per cent. Also, on a year-to-date basis, the stock was down by approximately 2.97 per cent and plunged by 10.03 per cent in the past three months.

Share’s RSI for the 30-days, 14-days and 9-days stood at 45.29, 43.89and 46.93 respectively. Also, the stock’s 3-days RSI stood at 71.56. The volatility of the stock for 200 Days, 90 Days, 30 Days stood at 37.46, 33.57 and 27.95 respectively.

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