Business
Completion of Finsch Diamond Mine Acquisition
Completion of Finsch Diamond Mine Acquisition.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n \nRNS Number : 2239O Petra Diamonds Ld 14 September 2011 \n \n\n \n \n\n\n\n\n14 September 2011\n\n\nAIM: PDL\n\n\n\n\n \n \nPetra Diamonds Limited\n(\"Petra\", the \"Company\" or the \"Group\")\n \nCompletion of Finsch Diamond Mine Acquisition\n \n \nPetra Diamonds Limited announces the completion of the acquisition of the Finsch diamond mine (\"Finsch\") in South Africa from De Beers Consolidated Mines Limited (\"De Beers\"), initially announced on 21 January 2011. \n \n \nHighlights:\n \n· Petra will assume management (including production, revenues and cashflow) at the mine with immediate effect.\n \n· Finsch is one of the world's major diamond mines and is expected to more than double Petra's annual production (steady state), contributing ca. 1.5 million carats per annum (\"Mctpa\") to Group production, rising to nearly 2 Mctpa by FY 2018. The addition of Finsch to Petra's portfolio accelerates the Group's exceptional growth profile - it is expected that Group production (including Finsch) will increase to ca. 4 Mctpa by the 2014 financial year (\"FY\") and to over 5 Mctpa by FY 2019.\n \n· The addition of Finsch's major reserves and resources base of 43.3 million carats (\"Mcts\"), including 25.8 Mcts in the reserve category, has increased the gross Group reserves and resources to over 300 Mcts, with a gross attributable in-situ value of ca. US$56 billion¹.\n \n· Petra has expanded its diamond marketing team to manage the increased carat production and tender activity - in FY 2012 Finsch is expected to add ca. 125,000 carats per month to Petra's output after an initial three month bedding down period, adding at least 1 Mcts for the financial year.\n \n· Finsch is expected to be immediately accretive to NAV and operating cashflow per share in FY 2012. Petra has a proven track record of extracting value from similar acquisitions, with a plan to mirror the successful strategy (including its block caving expertise) applied at Cullinan.\n \n· The purchase consideration of R1.425 billion has been funded from Petra's US$ treasury account following the successful equity placing in January 2011 which raised ca...