Petra Diamonds announces interim results

Petra Diamonds has announced its interim financial results according to which, its revenues increased by 5 percent to $33.8 million in the six months ending December 31, 2008. It however encountered a net loss of $88.1 million in the first fiscal half, while in the same period the previous year it had enjoyed a profit of $8.2 million. The company had to pay $75.3 million in impairment losses to its assets during the reporting period, charges it did not have during the previous year.

According to the production details of the Group, in the first half of 2008 production increased by 444 percent to 550,413 carats, following the addition of the Cullinan mine during the beginning of the said period, while in the same period of last year, production amounted to 101,213 carats.

In the wake of the economic crisis of current times, the company is cautiously working at monitoring and maintaining its operating costs, efficiencies and capital expenditure. The company has recently reduced its exploration budget to $5 million a year with the intent to focus on its cash-generating and diamond-producing mines. In the bargain it has divested from most of its polished diamond business and exploration and development projects. Currently the company operates five mines in South Africa - Cullinan mine, the Koffiefontein mine and the three fissure mines, Helam, Sedibeng and Star. It also owns one mine in Tanzania after it recently acquired the Williamson mine from De Beers, and is awaiting final approval of its bid for De Beers Kimberley Underground operations.