For release 24 January 2008
AIM: PDL
Petra
Diamonds Limited
Trading Update
Petra Diamonds
Limited ("Petra"
or "the Company") announces a trading update (unaudited) for the six
months to 31 December 2007 ("the Period").
Petra is AIM's leading diamond producer. The Company has, over the past 14
months, successfully grown its base of quality production assets (all in South Africa)
through the separate acquisitions of the Cullinan, Koffiefontein and Kimberley
Underground mines. These mines complement Petra's
world class exploration base in Angola
(Alto Cuilo, Luangue), Botswana
(Kalahari Diamonds) and operations in Sierra Leone (Kono).
This is the first six monthly trading update published by the Company
and trading updates will now be regularly published on a six monthly basis,
shortly after the period end and in advance of the half and full year results.
Petra will publish its interim results to 31 December 2007 on 19 February
2008, which will include a review of exploration and other developments for the
Period.
The trading results for the Period are comprised of Koffiefontein and Petra's fissure mines;
the acquisition of both the Cullinan and Kimberley Underground mines are
subject to regulatory approvals and the completion of both of these
transactions is progressing well.
Highlights
Sales
- Revenue for the Period: US$31.7
million, a 286% increase on the 6 months to 31 December 2006: US$8.2
million
- Substantial revenue growth
mainly due to Koffiefontein sales coming on stream in July, supported by
strong diamond prices at the fissure mines
- 115,918 carats sold for the
Period, a 79% increase on the 6 months to 31 December 2006: 64,940 carats
- Koffiefontein yielded excellent
values at an average of US$408 per carat; average value per carat from
fissure mines increased substantially to US$182 (6 months to 31 December
2006: US$126)
- Two
exceptional diamonds sold for more than US$1 million each in the Period: a
74.7 carat diamond in September for US$1,012,636 (Koffiefontein
production) and a 99.43 carat diamond in December for US$1,305,009
(Sedibeng production)
Production
- Production of 101,213 carats, a
17% increase on the 6 months to 31 December 2006: 86,396
- Changes made by Petra in the
Koffiefontein treatment plant are yielding highly encouraging results with
an improvement in the recovered grade to 8.2 carats per hundred tonne
("cpht") against an estimate of 7.3 cpht used in the original
business plan
- Operating costs at
Koffiefontein and the fissure mines are in line with expectations
Adonis Pouroulis, Chairman, said:
"This has been a very significant period for the Company, with
Koffiefontein now adding substantially to revenue, and the acquisition of both
the Cullinan and Kimberley Underground mines. Given the scarcity of economic
kimberlite diamond deposits worldwide, Petra's
strategy has been to acquire existing diamond mines with the potential for long
life operations to balance its exploration portfolio. Our strategy has taken a
further major step forward with the successful integration of the Koffiefontein
mine, where the grade and value per carat achieved have far exceeded management
expectations. In 2008 we will bring in the Cullinan and Kimberley Underground
mines to our portfolio, and we are confident that our rising production and the
associated cash flow streams will add significant value to our
shareholders."
Production and sales
summary - combined Koffiefontein and fissures mines
|
Unit
|
6 months ended
31 December 2007
|
6 months ended
30 June 2007
|
6 months ended
31 December 2006
|
Production
|
|
|
|
|
Diamonds produced
|
Carats
|
101,213
|
94,078
|
86,396
|
|
|
|
|
|
Sales
|
|
|
|
|
Revenue
|
US$M
|
31.7
|
8.5
|
8.2
|
Diamonds sold
|
Carats
|
115,918
|
57,881
|
64,940
|
Koffiefontein mine
|
Unit
|
6 months ended
31 December 2007
|
6 months ended
30 June 2007
|
6 months ended
31 December 2006
|
Production
|
|
|
|
|
Diamonds produced
|
Carats
|
38,456
|
29,955
|
14,468
|
Grade
|
Cpht
|
8.2
|
7.7
|
7.7
|
|
|
|
|
|
Sales
|
|
|
|
|
Revenue
|
US$M
|
19.1
|
-
|
-
|
Diamonds sold
|
Carats
|
46,937
|
-
|
-
|
Average price per carat
|
US$
|
408
|
-
|
-
|
Fissure mines
(Sedibeng, Star, Helam)
|
Unit
|
6 months ended
31 December 2007
|
6 months ended
30 June 2007
|
6 months ended
31 December 2006
|
Production
|
|
|
|
|
Diamonds produced
|
Carats
|
62,757
|
64,123
|
71,928
|
Grade
|
Cpht
|
47.5
|
42.7
|
41.6
|
|
|
|
|
|
Sales
|
|
|
|
|
Revenue
|
US$M
|
12.5
|
8.5
|
8.2
|
Diamonds sold
|
Carats
|
68,981
|
57,881
|
64,940
|
Average price per carat
|
US$
|
182
|
147
|
126
|
*� Note 1: All production and sales figures are
stated gross
�� Note 2:
Although production was recorded at Koffiefontein in the year to June 2007
during the care and maintenance period, sales only commenced in July 2007 when
the remaining conditions in the Koffiefontein acquisition agreement were
met��
For further information, please contact:
Cathy Malins
|
Telephone: +44 (0) 20 7493 7671
|
Petra Diamonds, London
|
|
Louise Goodeve / Justine Howarth
|
Telephone: +44 (0) 20 7851 7480
|
Parkgreen Communications, London
|
|
Adrian Hadden
|
Telephone: +44 (0) 20 7523 8000
|
Collins Stewart, London
|
|
About Petra
Diamonds
Petra Diamonds is a
pan-African diamond mining group with a balanced portfolio combining major
producing mines, world class exploration assets and a cutting and polishing
business.
With operations in South Africa, Angola,
Botswana and Sierra Leone, Petra's objective remains to grow its stature as a
leading diamond producer in all of the countries in which it operates. In
South Africa, Petra has four producing
mines and recently reached agreement to acquire a further two mines (Cullinan
and Kimberley Underground). The Company is on track to significantly grow
its annual production from 180,000 carats in the year to June 2007, to over
400,000 carats in the year to June 2009 and is targeting over 1 million carats
thereafter.
Complementing the Group's production is an
exploration and development portfolio spread across some of the world's most
prospective diamond fields. In Angola,
Petra is
developing its world class Alto Cuilo and neighbouring Luangue projects in two
separate joint ventures with BHP Billiton. In Botswana,
Petra has
established the largest exploration holding in the country, where it believes
that modern exploration techniques will hold the key to the discovery of new, major
kimberlites. In Sierra Leone,
Petra is
developing a fissure operation and test work to date indicates the potential
for economic operations.
Visit Petra Diamonds at www.petradiamonds.com
�