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Petra Diamonds: Now Materially Undervalued And Offers Exceptional Asymmetric Reward

Aug. 03, 2021 9:17 AM ETPetra Diamonds Limited (PDLMF)5 Comments
Noah Riley profile picture
Noah Riley


  • Petra Diamonds' recent trading update was exceptional, showing the company has turned a corner on the cash generation front.
  • The company is paying down debt at a fast pace, paving the way for the company to be net cash positive by late 2022.
  • The current share price is not a fair reflection of Petra's future prospects.
  • High likelihood of valuable 'bonanza' diamond finds at Cullinan to aid debt pay down further.

Cullinan Diamond Mine and kimberlite pile
THEGIFT777/iStock via Getty Images

I have written about Petra Diamonds (PDMDF) previously, investors should see this as an update to my earlier articles on the company

Back in October, I took a very bearish view on Petra Diamonds leading up

This article was written by

Noah Riley profile picture
Hi there! I am Noah, I work in finance in London and write about businesses that interest me here on Seeking Alpha.If you want to reach out, whether that's to ask me any questions or just to connect, feel free to message me on Seeking Alpha or LinkedIn.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PDMDF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (5)

Arkadiy Burdin profile picture
it seems that now it has become even more attractive. What do you think, Noah?
Maybe it is time to reiterate your forecast.
Hi Noah, thanks for the continued great play by play on Petra. What is the difference between ticker PDMDF, PDLMF, and LON: PDL ?
Noah Riley profile picture
@robertg2 i believe that PDMDF and PDLMF are the ticker symbols for US OTC (pretty sure there is little to no liquidity). The former one was Petra's previous ticker and the latter s its new OTC symbol. PDL is its standard London stock exchange ticker.
NPC #24601 profile picture
Is a squeeze out on the table given the 91% ownership. What happens to the 9% in this scenario?
Noah Riley profile picture
@NPC #24601 Sorry don't quite understand the question? Although the 91% is technically in 'sticky hands', I do not believe they have a lock-up period - though I may be wrong. low float does provide an opportunity for big moves but LSE shares struggle with this due to lower volume.
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