Petra Diamonds enjoys profit after tax of $59.2m

Diamond manufacturer releases preliminary results with strong growth.

Diamond manufacturer Petra Diamonds has announced its unaudited preliminary results for the year ended June 30, with a revenue of US $220.6 million (£140.7 million).

Financial highlights in the results show that Petra has made a profit of $76.4 million (£48.7 million) from its mining activity, up $5.3 million on last year’s results. Its operating cashflow current stands at $50.6 million (£32.2 million), up from $48.8 million in 2010.

EBITDA for Petra is $67.1 million (£42.8 million), down from last year’s $70.9 million, however Petra states last year’s $70.9 million included the profit of $35 million from the sale of the 507 carat Cullinan Heritage diamond.

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The diamond manufacturer’s cash at bank on June 30 stood at $324.9 million (£207.3 million), a massive increase on last year’s $34.5 million, though this is associated with the acquisition of the Finsch mine.

In terms of this year’s operation, Petra has produced 1,117,795 carats, which it describes as “relatively flat for the period”, due to the company’s strategic focus on value production by raising bottom-cuts at certain operations including the planned cessation of main pit production at Williamson, the planned depletion of its optical sort plant tailings material at Cullinan. Unseasonably heavy rainfall in South Africa has also affected production.

Johan Dippenaar, chief executive of Petra said: “Over the last year, Petra further consolidated its position as one of the world’s largest quoted diamond mining groups. We have a high quality portfolio of production assets and expansion plans underway which will drive our exceptional growth profile.

“The fundamentals of our industry are strong; whilst the global supply of diamonds remains constrained, demand continues to rise in both established and new markets. With the completion of Finsch and the proposed move up to the Main Market of the London Stock Exchange, I am very positive about the future for Petra in the 2012 financial year and beyond,” he added.

The outlook for Petra is that after an initial three month bedding down period, Finsch is expected to add an approximate 125,000 carats per month to Petra’s output, adding at least 1 million carats during financial year 2012.




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