Petra Diamonds Ltd, the second largest producer of diamonds in Africa, has posted a record post tax profit of U.S.$70 million for the year ending June 30, 2010.
The group revenue has more than doubled from $69.3 million in 2009 to $163.7 million in 2010. Profits from the mining activities of the group have risen from $7.8 million to $ 67.2 million.
The annual gross production rose to 1.2 million carats, a rise of 6% compared to the previous year. Plans to double the production by the financial year 2014 see the company in talks with diamond giant De Beers to buys its Finsch and Namaqualand mines in South Africa.
They have also increaded ownership in the Cullinan mine from 37% to 74% and acquired the Kimberly Underground mine in the last year. The company has also sold Cullinan Heritage diamond for $35.3 million.
The CEO of Petra Diamonds Ltd, Johan Dippenaar said that the rough diamond prices are set to go up in the coming year as concerns over a double dip recession wane. He said that there is a potential for the market to end the year on a very firm footing.
In South Africa, Petra has six producing mines - Cullinan, Koffiefontein, Kimberley Underground, Helam, Sedibeng and Star (the Fissures). In Tanzania, Petra has a 75% interest in the Williamson mine.