Industry News
Petra Diamonds Announces Strong Interim Results
23/02/2009
By Rachel Lieberman
Petra Diamonds has announced interim results for the six months ending on December 31 2008. Gross revenue from rough diamond sales came to $47.3 million, a 49% increase in comparison to $31.7 million during the six months up to 31 December 2007. Attributable revenue from rough diamond sales came to $33.8 million as compared to $31.7 million during the parallel period in 2007.
The company reported gross diamond production of 550,413 carats, constituting a 444% increase as compared to 101,213 carats during the six months ending in December 2007.
Regarding South African diamond mines’ cash flow for the period, cash mainly applied on the Cullinan and Williamson diamond mine acquisitions, Kimberley Underground development / plant and Angolan exploration, which has since ended. Cash at bank reportedly stood at $10.5 million as compared to $59 million in 2007.
Total resource base increased to 265 million carats.
Petra Diamonds reported that the acquisition of the Williamson diamond mine in Tanzania was completed on February 19, 2009 with ownership effective from November 2008.
The company currently operates six diamond mines in South Africa (5) and Tanzania (1).
Petra reported that its diamond exploration budget has been cut by $25 million in order to focus resources on the development of the cash–positive producing operations. Due to these considerations, Petra recently withdrew from both the Alto Cuilo and Luangue diamond projects in Angola.
Petra Diamonds CEO Johan Dippenaar, stated: “The Petra Group is built on very strong foundations and a low cost production focus. With our world class production base being enhanced by the addition of the Kimberley Underground and Williamson diamond mines, The decision to exit capital intensive exploration activity was a sound and swift response to the pressures brought on by the global financial environment. Petra’s world-class asset base and management team positions the business to weather present market circumstances and to benefit strongly when the diamond market recovers.”
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