Petra Posts $88 Loss in 2nd Half of 2008

Petra Diamonds Limited reported $47.3 million gross revenue from rough diamond sales in the second half of 2008, a 49 percent increase over the last six months of 2007. Group attributable revenue of $33.8 million from the rough diamond sales increased from $31.7 million in 2007.

The revenue increase did not prevent the company from going into the red, closing the period with an $88 million net loss. The company spent $75.2 million on ‘impairment charge on assets’, according to a financial statement, an expense that did not exist in the second half of 2007. Exploration expenses were also on the rise, investing $13.2 million compared to just $1 million the year before.

The international diamond mining group reported a gross production of 550,413 carats, a 444 percent increase.

The last six months of 2008 were a rollercoaster ride for Petra, as it was for the entire diamond industry. Unusually high prices for rough diamonds dropped, nearing the point of no demand after the economic fallout in September.

During this period, Petra bought the Williamson diamond mine in Tanzania from De Beers. Additionally, two exceptional blue diamonds were recovered at Cullinan - one of them, a 39.19 carats diamond, sold for $8.8 million. The company also pulled out of both the Alto Cuilo and Luangue projects in Angola.