Petra Sinks Into the Red, Diamond Prices Fall 19%
October 29, 12
Petra’s revenues increased 43.7 percent to $316.9 million, while mining and processing costs jumped 58.6 percent to $263.9 million, leading the African diamond mining company to a loss in the year ending June 30, 2012.
The increase in costs were a combination of a weakening exchange rate of the South African rand against the dollar, a rise in electricity and labor costs as well as processing more ore.
The company nearly doubled diamond production to 2.2 million carats, following the completion of the Finch mine purchase and the volume of sold diamonds increased by 77 percent to 2.1 million carats.
Petra also suffered from a decline in rough diamond prices, falling 19 percent to an average of $152.03 per carat (p/c).
Petra aims to increase production to 5 million carats by fiscal 2019.
 Finch diamond mine in South Africa boosted Petra's production in fiscal 2012 |