Petra Diamonds had a productive final six months of 2008, with gross production up 444% on the year before to 550,413 cts in the period to December 31. Gross revenue for the period to was up 49% year on year to $47.3m (£32.4m).

Softening diamond prices in the last three months of the year hit on-mine gross profits, which fell 34% year on year to $10.2m (£7m). Petra Diamonds said that despite the year-on-year decline, it was a healthy result in a turbulent market.

Adjusted EBITDA at the group showed a loss of $6.3m (£4.3m), compared to last year’s interim results which showed a profit of $10.1m (£6.9m), impacted by Petra Diamonds' decision to take up control and sole funding of the Alto Cuilo and Luangue projects in Angola. It has since pulled out of the Alto Cuilo and Luangue, effective as of December.

Petra Diamonds has cut its exploration budget by $25m (£17.1m) to focus its resources on the development of “cash-positive producing operations”. During the period, Petra Diamonds acquired the Cullinan mine in South Africa, which is now its flagship asset. Earlier this month, the group completed its acquisition of the Williamson mine in Tanzania which it took over in November and expects to complete its acquisition of the South African Kimberley Underground mine within the next two months.

Petra Diamonds chief executive Johan Dippenaar said: “The Petra group is built on very strong foundations and a low-cost production focus. With our world-class production base being enhanced by the addition of the Kimberley Underground and Williamson mines, the decision to exit capital intensive exploration activity was a sound and swift response to the pressures brought on by the global financial environment.

“Petra’s world-class asset base and management team positions the business to weather present market circumstances and to benefit strongly when the diamond market recovers.”

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