Petra Posts Rise in Profit, Revenue for 1H

Petra Diamonds earned $37.9 million in profit, after tax, in the six month period ending December 31, 2009. The figure reflects a vast improvement for the mining company, which had reported $88 million in losses for the same period last year.

Petra saw its gross mine revenue increase during the half-year as well, up 32 percent to $62.4 million, compared to 47.3 million in 2008. Profit from mining activity, before depreciation, decreased to $8 million from $10.2 million in 2008. The decline was partly attributed to a 72 percent rise in mining and processing costs that totaled $40.5 million

The company had boosted its revenues by increasing its share in its Cullinan mine from 37 percent to 74 percent. Petra raised its shares in the mine in November and saw an extra $6.1 million in revenues as a result.

“These strong trading results demonstrate that Petra Diamonds has made significant progress during the period, with increased diamond production in a rough diamond market that continues to strengthen,” said Petra CEO Johan Dippenaar. “The company is in a robust financial position, combining profitable mining operations with a well-capitalized balance sheet. Our priority now is to deliver on our core objective to expand production at each mining asset, taking annual production from one million to over three million carats, and further enhance our profile as the unique growth opportunity in the diamond sector.”