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Petra’s outstanding results

The open pit at
Williamson in Tanzania
– now being taken
over by Petra
London, England — MININGREVIEW.COM — 23 September 2008 – Petra Diamonds Limited (Petra) – an international diamond mining group with a balanced portfolio of major producing mines and world class exploration assets in South Africa, Angola, Botswana, Sierra Leone and Tanzania – has completed its most impressive financial year to date, and is on track for an even better performance in the current financial year.

Releasing its preliminary results for the year ended 30 June 2008 here today, the company described itself as “one of the world’s largest independent diamond groups on a resource basis.”

The release revealed that group revenue for the period was up 352% to US$76.9 million (R580 million), compared to US$17 million (R127.5 million) in the 2007 financial year. On-mine gross profit (before depreciation) for the period leapt from US$1.3 million (R10 million) in 2007 to US$39.2 million (almost R300 million) in the year to 30 June 2008.

Production amounted to 200 287 carats for the period, but Petra emphasised that with new mines coming on stream, it expected a five-fold increase to over 1 million carats in the current financial year ending on  30 June 2009.

In the past year the company acquired interests in the Cullinan and Kimberley Underground mines from De Beers. It took over operations at Cullinan 16 July 2008, and the Kimberley Underground acquisition is expected to be finalised in December 2008.

A group resource update issued today put the resource at 265 million carats, worth US$27.3 billion (more than R200 billion), a transformational increase from 11.38 million carats, worth US$1.9 billion (almost R15 billion) a year ago. The increase was due to the inclusion of:

  • Cullinan – the world’s second-largest indicated diamond resource with an in situ value of 208 million carats
  • Williamson – a major resource of over 40 million carats, and
  • Kimberley Underground at more than 6 million carats.

Petra chairman Adonis Pouroulis commented: “Petra has now evolved into a diamond group of global significance with the acquisitions of Cullinan, Kimberley Underground and most recently Williamson. Furthermore, the success at Koffiefontein clearly demonstrates our distinctive ability to turn such mines to account, and we look forward to achieving similar results at these acquisitions. Our focused exploration projects have the potential to increase this resource base still further,” he added.