Finsch Boosts Petra's Diamond Production
February 01, 12 by IDEX Online Staff Reporter
(IDEX Online News) – Diamond production by Petra increased 64 percent to 953,553 carats in the six months ending December 31, 2011 thanks to the addition of output from the Finsch mine to the company's portfolio.
The boost in production is yet to be completely seen in the sales results. Petra sold in the period 678,772 carats for $101.4 million, an increase of 16 percent in volume and 13 percent in value.
Revenue growth was also affected by weaker rough prices, which dropped in July 2011. The market stabilized later in the year, Petra said, adding that it expects this trend to continue in next six months. "Some volatility may be experienced due to global economic conditions," it cautioned.
According to CEO Johan Dippenaar, "(T)he long-term outlook for the rough diamond market remains positive due to the growth in demand from emerging markets set against a flat or declining supply trend."
Petra expects a further production increase in the second half of the fiscal year due to a full six months' contribution from Finsch as well as from adding additional run-of-mine treatment plants to the Kimberley Underground's Wesselton plant and the Williamson plant.
The increased output is expected to bring Petra's annual production to two million carats.
"Petra's position as London's largest quoted diamond mining group, with a premium listing on the Main Market of the London Stock Exchange, positions the company to benefit from investors looking to gain exposure to these fundamentals. Petra expects to enter the FTSE 250 index in March 2012," Dippenaar said.
Petra's Finch diamond mine in South Africa |
