24th Jan 2008 07:01
Petra Diamonds Ld24 January 2008 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 14months, successfully grown its base of quality production assets (all in SouthAfrica) through the separate acquisitions of the Cullinan, Koffiefontein andKimberley Underground mines. These mines complement Petra's world classexploration 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 andtrading updates will now be regularly published on a six monthly basis, shortlyafter 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 thePeriod. The trading results for the Period are comprised of Koffiefontein and Petra'sfissure mines; the acquisition of both the Cullinan and Kimberley Undergroundmines are subject to regulatory approvals and the completion of both of thesetransactions is progressing well. Highlights Sales • Revenue for the Period: US$31.7 million, a 286% increase on the 6months to 31 December 2006: US$8.2 million • Substantial revenue growth mainly due to Koffiefontein sales coming onstream 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 to31 December 2006: 64,940 carats • Koffiefontein yielded excellent values at an average of US$408 percarat; average value per carat from fissure mines increased substantially toUS$182 (6 months to 31 December 2006: US$126) • Two exceptional diamonds sold for more than US$1 million each in thePeriod: a 74.7 carat diamond in September for US$1,012,636 (Koffiefonteinproduction) and a 99.43 carat diamond in December for US$1,305,009 (Sedibengproduction) Production • Production of 101,213 carats, a 17% increase on the 6 months to 31December 2006: 86,396 • Changes made by Petra in the Koffiefontein treatment plant areyielding highly encouraging results with an improvement in the recovered gradeto 8.2 carats per hundred tonne ("cpht") against an estimate of 7.3 cpht used inthe original business plan • Operating costs at Koffiefontein and the fissure mines are in linewith expectations Adonis Pouroulis, Chairman, said: "This has been a very significant period for the Company, with Koffiefontein nowadding substantially to revenue, and the acquisition of both the Cullinan andKimberley Underground mines. Given the scarcity of economic kimberlite diamonddeposits worldwide, Petra's strategy has been to acquire existing diamond mineswith the potential for long life operations to balance its explorationportfolio. Our strategy has taken a further major step forward with thesuccessful integration of the Koffiefontein mine, where the grade and value percarat achieved have far exceeded management expectations. In 2008 we will bringin the Cullinan and Kimberley Underground mines to our portfolio, and we areconfident that our rising production and the associated cash flow streams willadd significant value to our shareholders." Production and sales summary - combined Koffiefontein and fissures mines Unit 6 months ended 6 months ended 6 months ended 31 December 2007 30 June 2007 31 December 2006ProductionDiamonds produced Carats 101,213 94,078 86,396 SalesRevenue US$M 31.7 8.5 8.2Diamonds sold Carats 115,918 57,881 64,940 Koffiefontein mine Unit 6 months ended 6 months ended 6 months ended 31 December 2007 30 June 2007 31 December 2006ProductionDiamonds produced Carats 38,456 29,955 14,468Grade Cpht 8.2 7.7 7.7 SalesRevenue US$M 19.1 - -Diamonds sold Carats 46,937 - -Average price per carat US$ 408 - - Fissure mines (Sedibeng, Star, Helam) Unit 6 months ended 6 months ended 6 months ended 31 December 2007 30 June 2007 31 December 2006ProductionDiamonds produced Carats 62,757 64,123 71,928Grade Cpht 47.5 42.7 41.6 SalesRevenue US$M 12.5 8.5 8.2Diamonds sold Carats 68,981 57,881 64,940Average price per carat US$ 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 June2007 during the care and maintenance period, sales only commenced in July 2007when the remaining conditions in the Koffiefontein acquisition agreement weremet For further information, please contact: Cathy Malins Telephone: +44 (0) 20 7493 7671Petra Diamonds, London Louise Goodeve / Justine Howarth Telephone: +44 (0) 20 7851 7480Parkgreen Communications, London Adrian Hadden Telephone: +44 (0) 20 7523 8000Collins Stewart, London About Petra Diamonds Petra Diamonds is a pan-African diamond mining group with a balanced portfoliocombining major producing mines, world class exploration assets and a cuttingand polishing business. With operations in South Africa, Angola, Botswana and Sierra Leone, Petra'sobjective remains to grow its stature as a leading diamond producer in all ofthe countries in which it operates. In South Africa, Petra has four producingmines and recently reached agreement to acquire a further two mines (Cullinanand Kimberley Underground). The Company is on track to significantly grow itsannual production from 180,000 carats in the year to June 2007, to over 400,000carats in the year to June 2009 and is targeting over 1 million caratsthereafter. Complementing the Group's production is an exploration and development portfoliospread across some of the world's most prospective diamond fields. In Angola,Petra is developing its world class Alto Cuilo and neighbouring Luangue projectsin two separate joint ventures with BHP Billiton. In Botswana, Petra hasestablished the largest exploration holding in the country, where it believesthat modern exploration techniques will hold the key to the discovery of new,major kimberlites. In Sierra Leone, Petra is developing a fissure operation andtest work to date indicates the potential for economic operations. www.petradiamonds.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Petra Diamonds