Petra Diamonds posts record full-year net profit
The Cullinan Heritage
LONDON, September 20, 2010 – Diamond miner Petra Diamonds reported a record net profit of $70.2 million for the year to the end of June, bolstered by the sale of the 507-carat Cullinan Heritage diamond.
The profit contrasted with a loss of $89.0 million the previous year.
Revenue surged 88 percent after the company received $35.3 million for the Cullinan Heritage, a record price for a rough diamond, and on a recovery in diamond prices.
Petra expects diamond prices to be firmer for the 2011 financial year if the market and the global economy remain stable.
Demand from the United States, which accounts for about half of the global diamond jewellery market, has improved.
Consumption from China and India is expected to continue to increase and will be supported by rising diamond content in jewellery.
The company produced 1.16 million carats and said expansion plans are on target to more than double output by the 2014 financial year and more than triple output by full-year 2019.