It took Petra Diamonds five years to establish a significant portfolio of diamond producing mines, having acquired a new operation from De Beers almost every year between 2007 and 2011. With the largest revenue and production of diamonds by volume, and a major expansion plan underway to increase its grade and life of mine, the fifth and final acquisition Finsch could be considered one of its most ingenious buys. Laura Cornish reports.
Considering its production and revenue impact was almost immediate on Petra’s bottom line following the acquisition, it was not difficult to understand why Petra Diamonds acquired the 3.7 ha, 74%-owned Finsch pipe (26% belongs to its BEE partner). The company’s gross production profile increased by 21% to 2.67 million carats from 2012 to 2013 (FY), increasing its gross revenue by 27% to US$402.7 million. With a major expansion underway, Finsch now forms an important part of Petra’s strategy to increase production further to 5 million carats by FY 2019.
While these facts alone validate the acquisition, they in fact mark only the beginning of a much greater plan for Finsch’s future and subsequently its overall contribution to the company.