You are here:
Celebrate our 150th anniversary with fantastic savings on a joint magazine and IC Advantage subscription.
Chief executive Johan Dippenaar described Petra Diamonds as having been "transformed beyond recognition" as the group delivered its first ever net profit. Following a series of major mine acquisitions, the group now has a resource base of 265m carats, worth $27.3bn (£14.8bn), up from the 11.38m carats, worth $1.9bn in October 2007.
Advertising
Petra achieved record diamond prices across all operations. The results further benefited from the first full-year's production from Koffiefontein (89,622 carats), which the group bought from De Beers and is now one of the world's top kimberlite mines by carat value. In July, Petra took control of the Cullinan mine, which hosts the world's second-largest diamond resource - 208m carats - and has historically produced spectacular stones. Earlier this month, Petra agreed to acquire 75 per cent of the Williamson mine, which is also renowned for large, high value diamonds. With these new mines coming onstream, Mr Dippenaar is targeting a fivefold increase in overall production next year to over 1m carats.
Rising labour, power and steel costs were offset by the weakening of the South African rand against the US dollar. Prior to these results, broker Collins Stewart was forecasting EPS of zero for 2009.
| PETRA DIAMONDS (PDL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 100p | MARKET VALUE: | £184m | |
| TOUCH: | 99-100p | 12-MONTH HIGH: | 155p | LOW: 74p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 83¢* | NET CASH: | $15.8m | |
| Year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 2.31 | -21.0 | -28.4 | nil |
| 2006 | 20.9 | -20.0 | -13.1 | nil |
| 2007 | 17.0 | -22.3 | -13.2 | nil |
| 2008 | 77.0 | 9.29 | -3.17 | nil |
| % change | +353 | - | - | - |
*Includes intangible assets of $41.8m, or 23¢ a share £1 = $1.85 |
||||
More share tips and updates...
Check out our tip performance...
Rising revenues should be accompanied by falling costs as the group completes major capital spending schemes. So, despite falling on our buy tip (159p, 29 June 2007), we reiterate that advice. Buy.
Free access to financial data, charts, portfolio tools and more - registration is quick, secure and free!
Profit from IC share tips; discover the benefits of IC Advantage and sign up for a free trial.
© The Financial Times Limited 2010. All rights reserved. "Investors Chronicle", "FT" and "Financial Times" are trademarks of The Financial Times Limited. No part of these web pages may be reproduced or transmitted to or stored in any other website or other form of electronic retrieval system, without prior permission in writing from the editor.
Warning: Do remember, particularly if you are new to stock market investment that the prices of shares and other investments can fall sharply. You may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions. Take independent advice before making such decisions. This site is aimed at UK residents only. To read more please see our Important Warning
v6.2.11.1 running on ftbwebw-sun-02-z1
