Business
Trading and exploration updat
Trading and exploration updat.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n RNS Number : 4480K Petra Diamonds Ld 19 December 2008 \n \n\n\n\n\n\n\n\n\n19 December 2008\n\n\n\n\n\nAIM: PDL\n\n\n\n\n\n\nPetra Diamonds Limited\n('Petra Diamonds' or 'the Company' or 'the Group')\n\nTrading and exploration update\n\nStrong trading underpins strategic move to focus on cash-generative production\n\n\nPetra Diamonds, the international diamond mining group, announces the following pre-close trading update (unaudited) for the six months to December 2008 ('the Period'), as well as the results of a strategic review of its exploration activities.\nJohan Dippenaar, Chief Executive Officer, comments:\n\n'These strong trading results are as a result of the production and revenue contributions from the Cullinan and Koffiefontein mines. The Company has been transformed by the acquisition of these mines and with the Kimberley Underground and Williamson mines adding further production in the next six months we are comfortable in deciding to relinquish the capital intensive exploration projects that have historically been Petra Diamonds' focus. \n\n'The global financial environment requires a change in commercial approach, and that has been recognised and acted upon by the Petra Diamonds' Board. Our focus now is to continue to build cash-positive production, whilst maintaining rigorous cost control. \n\n'Although the diamond mining industry faces difficult times, given the current weakness in the financial and diamond markets, we believe we enter 2009 in a strong position.'\n\n\nHighlights\n\nTrading update*\n\n\nGross revenue from rough diamond sales for the Period: US$48.1million, a 52% increase on the six months to 31 December 2007: US$31.7 million \n\n\nSubstantial gross revenue growth mainly due to the Cullinan mine coming on stream from 16 July 2008, offset by weaker diamond prices in the latter half of the Period and reduced sales at Koffiefontein due to the release of diamond inventory in the comparable period \n\n\nA second exceptional blue stone, of 26.58 carats, has recently been recovered at Cullinan; early indications are that it is an extremely rare stone, of even better colour and clarity than the r...