Impairments and losses at closed operations push Petra deeply into the red
Chair Adonis Pouroulis says the diamond company is in position to reap the benefits of its expansion
Petra Diamonds reported a $201m full-year net loss mainly because of impairments, but an operational improvement left the London-listed company better able to tackle its debt as its CEO Johan Dippenaar prepared to step down. Petra, which has four mines in SA and one in Tanzania, reported a net loss of $203m for the year to end-June compared with a $21m profit the previous year. Revenue was 25% higher at $495m and mining profit was up by a third to $195m. It recorded impairments in excess of $150m against its Koornfontein mine and its KEM joint venture in Kimberley, which it is leaving. Output for the year, excluding KEM, was 19% higher at 3.8 million carats. Including the KEM joint venture, production was up 15% to 4.6 million carats. “These results paint an underlying picture of operational improvements and the development of a corporate structure more in keeping with a miner moving from being capex-intensive to a stable and larger producer and, hopefully, a strong free-cash flow g...
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