Petra Annual Sales Rise 22%, Production Up 454%

African diamond mining group Petra Diamonds Limited announced that it mined more than 1 million carats in the year ended 30 June 2009. This is a 453.6 percent increase in production over the previous fiscal year when the company mined 200,287 carats.

It was Petra’s goal to increase production past 1 million carats, and it achieved it through a series of acquisitions. The company did it, though, at a time when demand for rough fell sharply - as did prices.

This is reflected in annual sales, which increased b 22.1 percent to $94.4 million from the $77.3 million in sales in the previous year.

During the year, Petra sold a number of exceptional diamonds, including two blue diamonds from Cullinan. One that weighed 39.19 carat was sold as a rough stone in October fro $8.8 million ($225,934 per carat) and a 7.03 carat fancy vivid blue diamond sold as a polished stone (cut from a 26.58 carat rough) for $9.4 million ($1,349,752 per carat) in May.

“Trading conditions remain challenging and our cash flow remains tight, with the recent strengthening of the rand absorbing much of the benefit of the increase in rough prices,” said CEO Johan Dippenaar.

“This has been a year in which Petra has established itself as a significant diamond producer. We have grown our production substantially, continued to find world class stones, effectively managed our cost base and expanded our geographic footprint,” he added.