Despite Loss Petra Outlook Positive, 507 Carat Diamond Found

Petra CEO Johan Dippenaar holding 507 carat white diamond found at the Cullinan mine

Petra Diamonds posted an $8.6 million loss for the fiscal year, ending June 30 compared to a $25.5 profit in 2008. Group losses totaled $88.9 million, according to unaudited results announced September 29.

The company increased production nearly fivefold from just over 200,000 carats in 2008 to nearly 1.1 million carats in 2009.

Gross mine revenue amounted to $94.4 million, a 22.2 percent increase over 2008, which totaled $77.3 million.

Group revenue decreased to $69.3 million from $76.9 in 2008; profits from mining activities were $7.8 million, a large reduction compared to 2008 when mining profits reached $38.8 million.

Despite the setback, Chairman Adonis Poroulis stressed the increase in production and described it as part of a gearing up for greater production. He sees the diamond market in the midst of a recovery from which he expects great benefits for the company.

“This has been a remarkable period for the group, in which we have grown our diamond production fivefold to surpass one million carats, a core strategic milestone. The Petra business is now geared for further growth, managing as we do one of the world’s largest diamond resources. As the diamond market continues to show positive signs of recovery, we are well placed to benefit from the economic potential of our quality mining assets.”

Along with the results, the company announced the recovery of an exceptionally large rough white diamond weighing 507.55 carats at its Cullinan mine in South Africa as well as three other white diamonds of 168, 58.50 and 53.30 carats. At 507 carats, the diamond ranks as one of the top 20 largest high-quality rough diamonds ever found.