It could take 'between five and 10 years' to clear the debts related to the mine.
Petra Diamonds Mining News
Revenue rose 22 percent in the quarter to $80.2 million from $65.8 million a year prior, despite diamond prices being 5 percent lower when compared to the same period of 2017.
Johan Dippenaar has held the top position since 2005, when Petra merged with Crown Diamonds.
The miner said it expects to produce 4.6 million to 4.8 million carats in 2019, well below the 5.0-5.3 million carats it forecast in July last year.
The Kimberley Ekapa joint venture focuses on mining in the South African town of Kimberley.
Shareholders approved the discounted rights issue at a special meeting in London held Wednesday.
Petra has been hit by production delays, strikes, a confiscated consignment of diamonds and a strong South African rand.
Revenue for the quarter ended March 31 climbed 44% to $172 million, while production jumped 20% to a record quarterly volume of 1,194,947 carats.
Petra Diamonds said it has finalised an agreement with its lenders for a waiver of its December 2017 debt covenant and a resetting of debt agreements.
Petra was hurt mainly by a strike at its South Africa operations and the blocking of a consignment of diamonds in Tanzania.
The stock fell by 21%, the steepest intraday decline since September, after the miner lowered production forecasts and confirmed that a stronger South African currency would knock annual profits.
The company says that labour disruptions in South Africa and the confiscation of a parcel of diamonds by the Tanzanian government are to blame.
Over the last nine years 66 record-breaking and other noteworthy diamonds were recovered, and 61 of those have been found within the last five years.
Company reached wage agreement with the main union at two of its mines in South Africa. Workers will return to work on Friday.
Stock closed 12.2% higher at 64.80p, after it had fallen on Tuesday to its lowest since late 2015.
The National Union of Mineworkers said on Thursday its members would go on an indefinite strike at the mine over wages, benefits.
President John Magufuli also directed the central bank to buy the precious stone to boost reserves — the latest twist in a spat with mining firms over alleged tax evasion.
Shares in the diamond miner fell for a second consecutive day after it warned that two of its South african mines had been affected by strikes.
The Africa-focused diamond miner said that would likely happen unless it solves its issues with the government of Tanzania.
Draft bill gives government first option to buy unusually large diamonds found in the country's mines, such as the world's second-biggest 1,109 carat diamond discovered by Lucara two years ago.
The diamond miner also had to halt operations at its Williamson mine as several key employees are being questioned by local authorities.
President John Magufuli has asked for a review of a local contract belonging to Petra Diamonds and ordered senior officials to resign over the outcome of a probe into the diamond and tanzanite sector.
Labour disputes earlier in the year caused delays in the building of a new plant in its Cullinan mine in South Africa.
Lucara Diamond’s Lesedi La Rona is said to face challenges other rock never do, including its multi-million-dollar price tag and a risky polishing process that can take months or years.
President John Magufuli has also ordered the mining ministry to freeze the renewal of expired permits.