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Petra Diamonds' 3Q Revenue +87% to $98M

May 9, 2012 3:17 AM   By Avi Krawitz
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RAPAPORT... Petra Diamonds reported that its revenue rose 87 percent year on year to $98 million in its ‎third fiscal quarter that ended on March 31, 2012 as production rose and the rough market ‎stabilized. ‎The company's interim financial statement did not provide profit information for the quarter, however.

Petra sold 626,958 carats of diamonds during the quarter, which was 134 percent more ‎than one year ago. Group production increased by 126 percent to 622,509 carats due ‎mainly to the inclusion of output from its Finsch mine, which Petra bought from De ‎Beers in September 2011. ‎

‎Petra noted that the rough diamond market stabilized in December 2011, and pricing has since shown a slow but ‎steady upward trend, although market growth has been tempered by some volatility, the company explained. The stronger market is due to a recovery in ‎confidence after the initial impact of the Eurozone debt crisis abated and steady demand is ‎being observed from both the U.S. and Asian markets.

Production at the Finsch mine reached 343,051 carats during the quarter. Sales from the ‎mine amounted to $51.1 million from 338,770 carats, with an average price of $151 per ‎carat. Production at the Cullinan mine rose 1 percent to 222,196 carats, while sales from ‎the mine fell 9 percent to $30.6 million. The average price of Cullinan sales dropped 21 ‎percent to $125 per carat. Petra also owns the Koffiefontein mine, Kimberley ‎Underground operation, and three fissure mines in South Africa and the Williamson mine ‎in Tanzania. ‎

Petra has undertaken expansion projects at Cullinan, Finsch, Koffiefontein and Kimberley ‎Underground and is expecting to achieve production of 2 million carats for the full fiscal ‎year that ends on June 30. Group production during the first nine months of its fiscal year increased 84 percent to 1.576 million carats and gross revenue grew 40 percent to ‎‎$199.3 million. ‎

Johan Dippenaar, the chief executive of Petra, said the company expects a ‎strong fourth quarter as the company holds more tenders and expands ‎the Finsch mine production.

Petra shares were up 3.6 percent to 130.7 pence in early morning trading on the London ‎Stock Exchange. ‎
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Tags: Avi Krawitz, Cullinan, diamonds, Finsch, petra, Petra Diamonds, Rapaport, Rough Diamonds
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