Petra will Spend $289m to Extend Life of Two Mines
February 22, 22
(IDEX Online) - Petra Diamonds today said it will be investing $289m to extend the life of two of its South African mines, as it reported a sharp rise in revenue and a reduction of debt.
The UK-based miner said its board has approved a $173m expenditure on the Cullinan mine, extending its life to 2031, and a $216m spend on the Finsch mine, extending its life to 2030. Both should have an IRR (internal rate of return) of more than 30 per cent, it said.
Meanwhile it said revenue for the half year to the end of December 2021 was up 49 per cent to $264.7m, boosted by $77.9m from exceptional stones and a 16 per cent increase in like for like rough diamond prices.
Petra received over $40m for the 39.34-cts rough gem now known as the Cullinan Blue (pictured), bought by a De Beers and Diacore partnership and due to be sold at a highly-anticpated single-lot auction in April by Sotheby's.
Petra said its adjusted profit before tax for the six months leapt from $6.5m to $91.1m.
Richard Duffy, Petra's CEO said: "Petra has delivered strong results, growing revenue by 49 per cent and adjusted EBTIDA by 87 per cent, as well as reducing net debt significantly.
"We have benefitted from the recovery in rough diamond prices, record proceeds from the sale of exceptional stones, and the improvements we have made in our operations, resulting in significantly improved safety levels, profitability and cash flow."