Petra Diamonds warns of coronavirus hit as retail stores close
JOHANNESBURG – Petra Diamonds warned the coronavirus outbreak had hurt demand in the diamond market as stores were forced to close during the important Lunar New Year period in China, delaying the miner’s debt reduction initiative.
The company said the impact of the fast-spreading virus would cause delays in Project 2022, its debt reduction program launched last year. The miner also cut its cash flow target to between $100 million and $150 million by June 2022, from its earlier range of $150 million to $200 million.
The virus outbreak is seen as a new threat to the diamond industry which has already been hit by lower demand from China, the world’s second largest market after the United States, following a prolonged U.S.-China trade war and the Hong Kong protests.
Source: iol.co.za