JOHANNESBURG (miningweekly.com) – International diamond-miner, Petra Diamonds, would “weather the present market circumstances” and benefit “strongly” when the diamond market recovered, CEO Johan Dippenaar asserted on Monday.

In a statement to shareholders, Dippenaar commented that the group had a strong foundation and remained focused on low-cost production.

In addition, it was also expected to benefit from its production base, which it said had been enhanced through the acquisitions of the Kimberley underground mine, in South Africa, and the Williamson mine, in Tanzania.

In the six months ended December 31, 2008, the group recorded a net loss of $88-million, compared with a net profit of $8,2-million the year before, as a result of a number of expenses and charges.

These included: $7-million in depreciation, $1,7-million for the amortisation of intangibles in respect of the company’s prospecting licences in Botswana, and $75,2-million in impairment charges on its withdrawal from the Luangue, Alto Cuilo, Helam, Star and Kono projects.

Further, the group had also incurred $2,1-million in exchange losses, owing to the weakening of the rand against the dollar.

However, Petra’s revenues had increased by 5% to $33,8-million, compared with $32,1-million.

Diamond production was up by 444% to 550 413 ct, compared with 101 213 ct the year before.

Meanwhile, the group had also cut its exploration budget by $25-million during the six months in order to focus on the development of its cash-positive South African producing operations.

“As the company has grown, our project focus has rightly shifted to our cash-generative production portfolio, which we believe has the potential to offer the highest and the most immediate returns to our shareholders,” chairperson Adonis Pouroulis noted in a statement.

He added that despite the external challenges of the turbulent financial period, the company had recorded some “exceptional” achievements.

“The most notable was the successful and smooth takeover of the Cullinan mine, now our flagship asset, where we have been able to accelerate our production plans,” he said.

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