London’s biggest diamond mining company sees sales leap by 44%
London’s largest listed diamond mining group, Petra Diamonds, has seen revenue leap 44% in its latest financial year.
The company posted total sales of $316.9 million, up from $220 million in its 2011 financial year.
Earnings increased by 35% from $67.1 million to $90.3 million.
The financial year also saw Petra Diamonds complete the acquisition of South Africa’s Finsch mine for $192 million in September last year.
The acquisition triggered an upgrade from London’s AIM exchange, which lists smaller companies, to the FTSE 250 list of the UK’s 250 largest companies.
“2012 has seen Petra further consolidate its position as London’s largest listed diamond mining group. The successful acquisition and integration of Finsch, the step up from AIM to the main market of the London Stock Exchange, and the delivery on production targets all demonstrate Petra’s progression to the next stage of its development,” said Johan Dippenaar, Petra Diamonds CEO.
Petra Diamonds’ CEO review continued: “The diamond market’s performance in 2012 was characterised by volatility, in line with uncertain global economic conditions. After reaching new highs in June 2011, prices declined from July to December 2011; a temporary recovery was seen in Q3 FY 2012 to 31 March, before prices weakened again towards the Year end. Whilst in the short-term, the market is expected to remain under pressure, due to the prevailing climate of economic uncertainty, the medium to long-term outlook for the supply/demand balance in the rough diamond industry is considered to be robust, with demand generally forecasted by all commentators to exceed supply.
“Whilst demand growth may have slowed for now, demand for diamonds continues to rise in both established markets, such as the US and Japan, and new markets, such as China, as global wealth and consumer spending increase. An additional small but growing segment of demand is driven by interest in diamonds as a hard asset investment class, and a number of new investment products have been launched to provide exposure to diamonds,” the CEO review said.