Companies: PDL   

After turning £5.7 million losses into £4.2 million first-half pre-tax profits, Petra Diamonds has won regulatory approval for further expansion.

The AIM-quoted company, headed by second-generation South African entrepreneur Adonis Pouroulis, increased turnover fourfold to £16.1 million in the six months to December from its diamond mines in South Africa. Production increased 17 per cent to 101,213 carats and sales rose 79 per cent to 115,918 carats, swollen by the contribution from Koffiefontein, acquired in July.

Petra achieved strong diamond prices, particularly from Koffiefontein, which scored $408 a carat. Last month, into the second half-year, the company sold a 50.14-carat stone from its Sedibeng mine for $1.3 million (£612,000).

Petra, which expresses high hopes for its exploration joint ventures at Alto Cuilo and Luangwe in Angola, Kono in Sierra Leone and Kalahari Diamonds in Botswana, has 37 per cent of the PDCC consortium, which in November agreed to pay De Beers £72 million for the historic Cullinan diamond mine and assume £24.7 million environmental liabilities associated with it. Under the deal, Petra would pay £23.5 million towards the acquisition of the mine, which in the last century produced the 3,106-carat Cullinan diamond, the largest gemstone ever found.

The South African Competition Commission has now approved the Cullinan takeover, subject to certain conditions. Petra shares, highlighted by Growth Company Investor at 67.5p three years ago, hit 166.5p in early 2007, but more recently eased back. At 126.5p are 1p ahead today.

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Petra Diamonds	AIM	£137.95m	75.00p	-0.25p
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Other company articles:
Turnaround at Petra			23/09/2008
Petra sales boom			29/07/2008
Gem cheer for AIM groups			19/06/2008
Interim turnaround at gem group			19/02/2008
Petra in £100m expansion deal			22/11/2007