RSS UpdatesCompany Information for Petra Diamonds Ltd
Company stock charts - 6 Month chart
 AIM; PDL
View full financial data |
Company Statement
Petra Diamonds is a growing force in winning diamonds from Africa's rich resources
Petra is a diamond mining group focused on the exploration, mining and beneficiation of diamonds in Africa. Petra’s strategy is to build a portfolio of revenue producing and exploration assets, as AIM’s first mid-tier integrated diamond group.
Petra has mines in South Africa, is near production in Sierra Leone and has exploration operations in both Angola and Botswana; the recent acquisition of Calibrated Diamonds now gives Petra the ability to cut and polish its own production. Quoted on London’s AIM and listed on Australia’s ASX, Petra is well placed to achieve spectacular results from the increasingly robust market for diamonds.
Petra’s exploration activities at project Alto Cuilo in Angola yield ever more exciting results; as at October 2006, 62 kimberlitic occurrences had been identified by drilling and highly encouraging diamond indicator minerals had been recovered which are comparable to other economic kimberlite deposits around the world, confirming the potential for Alto Cuilo to host major economic diamond deposits.
The South African mines produced 175,000 carats in the year to June 2006 and will continue to increase the carat production in the year to June 2007 and beyond, giving the group healthy production revenues.
In Sierra Leone, Petra Diamonds has a 51% interest in the Kono Project alongside AIM and TSX quoted Mano River Resources Inc. Diamond recovery from the first bulk samples from the Lion fissures commenced in June 2006.
Botswana is the world’s number one producer of diamonds by value. In September 2005, Petra acquired Kalahari Diamonds Limited, giving Petra access to an exploration licence area larger than any other company operating in Botswana. Petra’s activities in this country are delivering solid exploration results.
Current Operations
Angola - PROJECT ALTO CUILO
Petra's exploration activities at Alto Cuilo in Angola yield ever more exciting results. It is widely accepted that Angola may hold some of the world's best kimberlite and alluvial diamond deposits. The Alto Cuilo project is in the north east of the country, about 700 kilometres from the capital, Luanda. The area is rich in kimberlites, with a major producing mine, Camafuca, about 80 kilometres north east of the Alto Cuilo project area.
As at April 2006, 38 kimberlitic occurrences had been identified at Alto Cuilo, with an estimated total surface area of approximately 1,437 hectares and 74% of the 140 holes drilled having intersected kimberlitic material. These developments underscore the potential for Alto Cuilo as a world class diamond project.
Petra has entered into a joint venture agreement with BHP Billiton with regards to Alto Cuilo and both companies are working together to further develop the project. BHP Billiton can spend up to US$60 million on Alto Cuilo, earning a 75% share of Petra's participation in the project.
Petra Diamonds has also entered into a strategic cooperation agreement with Xceldiam Ltd with regards to the Luangue project which shares a common border with Alto Cuilo. It is the area within 20 kilometres either side of this border that both parties are focusing their exploration activities, based on the geology and diamond prospectivity of the region.
Botswana - KALAHARI DIAMONDS
Botswana is the world's largest diamond producer by value and hosts two of the world's largest diamond mines, Orapa and Jwaneng. In September 2005, Petra acquired 100% of Kalahari Diamonds Limited, which is the holder of approximately 80,000km2 of highly prospective diamond exploration licences in Botswana.
Kalahari Diamonds also has a relationship with BHP Billiton whereby it has the right to direct the deployment of BHP Billiton's proprietary Falcon technology.
The acquisition of Kalahari Diamonds represented a significant step in Petra's strategy of continuing to build an exploration portfolio to complement its producing mines.
Sierra Leone - KONO PROJECT
Petra has entered into a joint venture with Mano River Resources regarding the production of diamonds from underground mining of the Lion kimberlite fissures, which are within the world famous Kono diamond district of Sierra Leone. Petra Diamonds have earned a 51% profit share and equity interest in the Kono project by spending US$3 million.
The Kono project is a kimberlite fissure project from which exploration production will commence by June 2006. Prospecting for further kimberlite fissures and blows, which are known to exist in the area, is underway. Initial indications suggest a fissure strike length greater than that of Petra's South African mines.
South Africa - HELAM MINE/NABERA/SEDIBENG/STAR MINE
The South African mining operations comprise the Helam, Sedibeng and Star mines. They are underground operations, mining kimberlite fissure systems, each with a remaining life of mine in excess of 15 years.
The mines will produce around 186,000 carats in the financial year to June 2006, giving the group healthy production revenues. Production is targeted to be around 300,000 carats by 2009/2010.
Petra is the largest producer of diamonds by volume in South Africa, after De Beers, and also the second largest employer in the diamond industry.
CALIBRATED DIAMONDS
On 27 November 2006 Petra acquired the Calibrated Diamonds group (‘CDIH’), a business focused on the cutting and polishing (‘beneficiation’) of rough diamonds utilising a unique process developed by the group and which enables the production of polished diamonds of a very high and consistent standard. The acquisition of CDIH provides Petra with the potential to significantly enhance its overall revenues due to the value added from the beneficiation of rough diamond production. The addition of CDIH’s beneficiation business to Petra’s production and exploration portfolio also makes Petra AIM’s first fully integrated mid-tier diamond mining group.
Geographical Spread
Petra is currently exploring in Angola and South Africa and has production assets in South Africa. Production from the Kono Project in Sierra Leone, where Crown has a JV with Mano River Resources expected in June 2006.
Board of Directors and Key Management
| The board and management of Petra Diamonds are well qualified and experienced in the technical aspects of diamond mining and exploration as well as corporate affairs. |
| Adonis Pouroulis, Chairman |
| Johan Dippenaar, Chief Executive Officer |
| David Abery, Finance Director |
| Jim Davidson, Technical Director |
| Charles Segall, Non-Executive Director |
| Volker Ruffer, Non-Executive Director |
Company Address36 Dover Street,
|
Additional Address/Key ContactCompany Registration Number EC23123, incorporated in Bermuda |
CapitalNo. of shares in issue - 181 m
|
Annual General MeetingNovember | Year End30 June |
Nominated BrokersCollins Stewart | Nominated AdvisorsCollins Stewart |
Major Shareholders
| High quality institutional spread. |
Related News
24/02/10 - Costs Are Up, But So Are Profits, As Petra Diamonds Moves Well Clear Of The Credit Crunch18/11/09 - Petra May Look For As Much As $100 Million In New Money As It Plans To Increase Production To Three Million Carats Per Year
01/10/09 - Petra Diamonds Aims To Double Production To 2 Million Carats In Next 2-3 Years
16/07/09 - Petra Diamonds Is Playing A Nimble Game In Difficult Times, While De Beers Is Stuck In A Mire Of Its Own Making
28/04/09 - Petra Diamonds Takes Its Seven Carat Fancy Blue Diamond On A World Tour, Ahead Of A Multi-Million Dollar Sale Next Month
05/03/09 - Better Than Bleeding Money: Petra Diamonds Toughs It Out On The Thinnest Of Margins
Most Recent Statement
26/02/10 - The 507 carat Cullinan Heritage diamond sells for US$35.3 million22/02/10 - Interim results for the six months to 31 December 2009
19/02/10 - Notification Of Major Interest In Shares
02/02/10 - Petra unveils The Cullinan Heritage
01/02/10 - Appointment of RBC Capital Markets as Joint Broker
26/01/10 - Notification of major interest in shares