EM CEEMEA CREDIT: PDLLN: Sale of interest in Tanzanian unit operator, supportive
Petra Diamonds (PDLLN; Caa2 neg/B-neg/-)
Sale of interest in Tanzanian unit operator, supportive
- PDLLN announced sale for USD16mn (subject to relevant approvals) of its 75% interest in Tanzanian unit operator Williamson Diamonds Ltd to Pink Diamonds, affiliated with Tanzania’s largest mining contractor Taifa Mining and Civils Ltd, the long-term technical contractor at the unit. The sale is to be paid out of Williamson distributable cash, expected to be completed by year end ’25. Proceeds will be used for GCP.
- The sale is part of PDLLN strategic cost review, an important step forward considering the challenging and persisting weakness in the diamonds market.
- Yesterday, PDLLN posted 1H25 total diamond sales of 1,400,539 carats, in line with 1H24. Revenues are all about Q2 though and reflect the weakening demand and persisting pressures on price, showing USD136mn for H125, down from USD188mn in 1H24.
- Consolidated net debt for 1H25 is reported @ USD225mn at the end of the period, open market repurchases of ‘26s still a key focus, with limited refinancing opportunities at this stage. The bonds are charting @ 79.375 cash price area, indicatively low 30%s yield (see chart below).
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AUDUSD TECHS: Southbound
- RES 4: 0.6550 High Nov 25
- RES 3: 0.6491 50-day EMA
- RES 2: 0.6429 High Dec 12
- RES 1: 0.6337/6382 Low Dec 11 / 20-day EMA
- PRICE: 0.6253 @ 07:28 GMT Dec 23
- SUP 1: 0.6199 Low Dec 19
- SUP 3: 0.6158 1.236 proj of the Sep 30 - Nov 6 - 7 price swing
- SUP 3: 0.6100 Round number support
- SUP 4: 0.6045 1.500 proj of the Sep 30 - Nov 6 - 7 price swing
The trend needle in AUDUSD continues to point south and the pair is trading closer to its recent lows. Last week’s move down maintains the price sequence of lower lows and lower highs. Note that moving average studies are in a bear-mode position too, highlighting a dominant downtrend. Scope is seen for an extension towards 0.6158 next, a Fibonacci projection. Initial firm resistance to watch is 0.6382, the 20-day EMA.
FOREX: Narrow Ranges In Play
No real change in tone in FX markets since our previous update, BBDXY a touch firmer on the day but still comfortably below Friday’s highs.
- JPY still weaker against all G10 peers, USD/JPY recently hit fresh session highs at 156.80 before fading back to 156.75.
- Initial resistance at Friday’s high (157.93) remains some distance away.
- JPY traders look to BoJ Governor Ueda’s Christmas Day speech and Friday’s Tokyo CPI data.
- EUR/USD now little changed at 1.0430. Initial support & resistance at 1.0343/1.0501.
- No real impact on GBP after marginal negative revisions in the final Q3 UK GDP data.
- U.S. durable goods and consumer confidence data headline the macro calendar today, little of note scheduled from Europe.
GOLD TECHS: Monitoring Resistance At The 20-Day EMA
- RES 4: $2790.1 - High Oct 31 and the bull trigger
- RES 3: $2750.0 - High Nov 5
- RES 2: $2730.4 - 76.4% retracement of the Oct 31 - Nov 14 bear leg
- RES 1: $2642.9/2726.2 - 20-day EMA / High Dec 12
- PRICE: $2631.5 @ 07:21 GMT Dec 23
- SUP 1: $2583.6 - Low Dec 19
- SUP 2: $2564.4 - Low Nov 18
- SUP 3: $2536.9 - Low Nov 14 and a key support
- SUP 4: $2511.1 - Low Sep 12
Gold traded sharply lower on Dec 18. The move down undermines a recent bullish theme. A resumption of weakness would signal scope for an extension towards the key support at $2536.9, the Nov 14 low. Moving average studies are in a bull mode position highlighting a medium-term uptrend and this suggests that the latest sell-off is likely a correction. Initial pivot resistance is $2642.9, the 20-day EMA. A breach of this EMA would be positive for bulls.
