Companies: PDL   

After lifting annual revenue 359 per cent to £38.4 million, Petra Diamonds projects a fivefold production increase to one million carats.

The South Africa-based company, which has five producing mines in the Republic and development projects in Angola, Botswana and Sierra Leone, says revenue growth in the year to June is mainly due to sales from its Koffiefontein mine coming on stream for the first time and strong diamond prices, particularly for higher-value stones. Koffiefontein’s production yielded an average value of $478 a carat, with the last tender in June achieving an average $726 a carat.

In volume terms, AIM-quoted Petra’s output rose 11 per cent in the last financial year to 200,287 carats, while sales increased 87 per cent to 230,172 carats. The company, chaired by second-generation entrepreneur Adonis Pouroulis and with Johan Dipenaar as chief executive officer, says it is focusing on the potential of its recently acquired underground kimberlite pipe operations, Koffiefontein, Cullinan and Kimberley Underground, and claims to be ‘on track’ to lift annual production to around one million carats in the current financial year to June 2009.

Elsewhere, Petra is developing the potentially ‘world-class’ Alto Cuilo and Luange projects in Angola, has established extensive land holdings in gem-rich Botswana and has a joint venture in Sierra Leone with another company, Stellar Diamonds. The company has taken over the management of Alto Cuilo, once seen as the jewel in its crown, from its partner there, mining giant BHP Billiton, and some sceptics have suggested that the timing is uncertain.

Petra shares, which trebled to 166.5p between 2005 and 2007, now trade at 94p, down 21.75p this morning, valuing the company at £173 million. Their appeal is speculative.

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Petra Diamonds	AIM	£136.11m	74.00p	-1.25p
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Interim turnaround at gem group			19/02/2008
Petra in £100m expansion deal			22/11/2007