Annual Report and Accounts 2013
Petra Diamonds Limited 11
Performance Review
Strategic Review
Corporate Governance
Group Accounts
Petra continues to demonstrate expertise in the recovery of
diamonds through the optimal configuration of our processing
plants. No two diamond kimberlites are the same and we always
look to ensure recovery of the full value spectrum afforded by
a particular orebody. This was demonstrated by our decision
to lower the bottom cut at Finsch to recover more diamonds
in the small size ranges, which are of particularly high value
at that mine. Our successful recovery of ‘specials’ also attests
to this expertise and it was particularly encouraging to sell the
first +US$1 million stones from both Kimberley Underground
and Williamson under Petra management during the Year,
following the in-house construction/refurbishment and
commissioning of the plants at both operations.
Structural changes continue in our industry and we note the
recent move of De Beers’ marketing operations from London
to Gaborone in Botswana as a positive for both the region and
for Petra. Southern Africa is becoming a major rough diamond
hub and we are well positioned to benefit from the heightened
activity, particularly given the ever increasing number of diamond
buyers coming to the region.
FY 2013 operations
FY 2013 diamond production increased 21% to 2.67 Mcts, slightly
above the previously revised market guidance of 2.65 Mcts.
The year on year increase was mainly due to Finsch’s contribution
for a full 12 month period (FY 2012 included circa nine months’
production from the date of acquisition) and Williamson
successfully achieving the planned levels of production following
the commissioning of its rebuilt plant at the end of FY 2012.
Revenue increased 27% to US$402.7 million (FY 2012: US$316.9 million),
primarily due to increased volumes coupled with the sale of
the 25.5 carat blue diamond from Cullinan for US$16.9 million in
May 2013. Carats sold increased 22% to 2,539,844 (FY 2012: 2,084,429),
in line with the increasing trend of production.
Increase in effective interests in South African operations
Effective 1 January 2013, the Group increased its effective
interest in each of its South African operations by acquiring
a 49.24% interest in Nelesco 651 (Pty) Ltd, which in turn provided
a 49.24% effective interest in Sedibeng Mining (Pty) Ltd,
one of Petra’s South African empowerment partners.
Waste rock
Mature block cave
kimberlite ore
Production level
Spiral decline
Rim tunnel
Surface level
Moving into undiluted ore
Block caving is a traditional and safe
mining method started in kimberlite
mining; provides access to higher
volumes of ore than other methods
Current underground mining taking
place in diluted, mature caves
Expansion programmes to take next
‘cut’ by deepening and establishing
new sub level and block caves
in undiluted kimberlite
Grades expected to rise significantly,
increasing margin per tonne mined:
Finsch ~34cpht to ~56cpht
Cullinan ~31cpht to ~50cpht
Will reduce wear and tear on
processing systems (waste rock
is harder and more abrasive
than kimberlite)
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