Its getting there......

Diamonds have no value in recession. Gold is more valuable.

Mine revenues strong at Petra Diamonds

http://www.growthcompany.co.uk/news/1603593/mine-revenues-strong-at-petra-diamonds.thtml

interesting chart with a clear and very stubborn resistance at the all-time high +/-180 ..... on the basis that that could/should be cleared next time around, then it could be champagne cork syndrome ..... def worth watching i think

having jumped into new territory, i have married money and mouth .... order book looks pretty strong at the moment too

Questor's top share tips for 2012


Petra Diamonds

Petra Diamonds shares have fallen significantly over the past few months as diamond prices have softened. These falls look overcooked, considering the group's production growth target and increasing demand for precious stones from Asia.

In December, the company moved to the main board from Aim, which means the shares are a real contender for entry into the FTSE 250 at some point in 2012.

The company is targeting an increase in production from 1.1m carats in the year to June 2011 to 4m carats in the year to June 2014. Progress on meeting this target will be positive for the shares.

It is also likely that diamond prices will rise again next year, as demand from the Middle East, China and India continues to grow.

According to Edward Sterck, a diamond analyst at BMO Capital Markets, the price of rough diamonds could rise 9pc in 2012 to $145 a carat. He expects price rise to continue all the way out to 2016. However, even a flat performance in the price should be positive.

The shares are trading on a June 2012 earnings multiple of 7.4 times, falling to just 5.5 in 2013. The company does not pay a dividend as it is investing for growth.

They look tempting.Up strongly today.

15 August 2012
LSE: PDL

Petra Diamonds Limited

("Petra" or the "Company" or the "Group")


Guidance Update

Petra Diamonds Limited announces that it has today publishedupdated analyst guidance for the year to 30 June 2013 ("FY 2013") and updated high level guidance for the period thereafter to FY 2019.Highlights of the updated guidance are below - the detailed guidance documentscan be downloaded from Petra's website athttp://www.petradiamonds.com/investors/financial-reports-and-results/analyst-guidance-15-aug-12.aspx.



Petra will announce its preliminary financial results for the year to 30 June 2012 on 24 September 2012.


FY 2013 Guidance Highlights

· Tonnes processed expected to be ca.17million tonnes ("Mt"), an increase of ca. 60% over FY2012 actual (10.4 Mt). This increase is due to a full year's production at Finsch and Williamson, combined with contributions from Petra's other operations.

· Carat production target of ca. 2.85million carats; an increase of ca.30% on FY 2012 actual (2.2 million carats); this target is 0.25 million carats lower than previous guidance issued early FY 2012, being mainly due to the revision of the mining scope at Finsch and the slightly lower production levels at Williamson (both covered below).

· Petra's production target of 5 million carats pa by FY 2019 remains on track.

· Further to Petra taking over operation of Finsch in September 2011, a mining scope change will be applied at the mine to improve the long term economics and tooptimise the production plan from a geotechnical and mining perspective. This will bring the added benefit of reducingexpansion Capex on previous guidance by ca.ZAR336million (ca. US$42 million)for FY 2013 and by ca.ZAR570million (ca. US$71 million) for the combined period from FY2013 to FY2016 (in comparable FY 2013 money terms).

· Guidance for Williamson adjusted toca.2.5Mtpa for FY 2013, climbing to 3.6 Mtpa by FY 2015.Petra still intendsto significantly increase productionabove these levels and the Company will update the market on further expansion programmes in due course wheninternal studies are completed.The deferral of the Phase 2 expansion programme, due to electricity and water supply constraints, will reduce plannedexpansion Capex forFY2013 by approximatelyUS$29million (in comparable FY 2013 money terms).

· Diamond prices expected to remain flat for the restof calendar year2012, with increases expected in calendar year2013 due to the effects of production decreases by major producers and the restocking of inventories in the pipeline, combined with a gradual improvement in global financial conditions.Whilst current rough prices remain under pressure, management continues to believe that the outlook is positive in the medium term.

· Unit operating costsin FY 2013 money slightly above previous guidance, mainly due to South African mining inflation running above the South African consumer price index (CPI). Costs remain well controlled and future increases will continue to be well managedby the Group.

· Expansion Capex for FY 2013 of ca.ZAR1,280million (ca. US$160 million) (South Africa) and US$8.6million (Tanzania), adecrease of ZAR213million (ca. US$27 million)(South Africa) and ca. US$29million(Tanzania)(as noted above)(in comparable FY 2013 money terms).



Conference Call

Petra's CEO, Johan Dippenaar, and Finance Director, David Abery, willhost a conference call at 9:30am BST today to discuss the updated guidance with investors and analysts. Participants are requested to access the detailed guidance documents from Petra's website and have them to hand before the call.



Participants may join the call by dialling one of the following three numbers shortly before the call:

From UK (toll free): 0800 368 1895

Questor share tip: Petra remains a gem despite production setback
Petra Diamonds shares have taken a tumble following revised production guidance. Questor keeps a buy.

Petra Diamonds shares have taken a tumble following revised production guidance. By Garry White
7:00AM BST 21 Aug 2012
2 Comments
Petra Diamonds
102p -1½
Questor says BUY

Petra Diamonds shares have plunged in the past few weeks, underperforming the wider mining sector significantly. Questor thinks the falls have been overdone.

Ahead of an update on the company's production guidance, there was a wave of selling. The market was anticipating a reduction and this duly emerged.

The company lowered its expectations for the year to June 2013, saying it now thought it would mine 2.85m carats, a cut of 250,000 carats.

The reduction was caused by a change in mining plans at its Finsch operation, which has been amended because of "increased levels of geotechnical risks".

The Finsch mine was bought in September 2011 from De Beers and the original forecast was determined during the due diligence process. It has since looked at its assumptions in more detail.

With Finsch only recently entering the fold, it should also not be too startling that guidance has had to change once Petra's management had all the facts. Petra has also delayed the second phase of its expansion at its Williamson mine because of power and water issues, with lower grades at its Cullinan mine expected to be offset by mining a higher tonnage of rock.

These changes mean that capital expenditure will be $71m (£45.2m) lower in 2013 and there will be a $29m fall in 2014 to 2016.

Despite this, output is still expected to jump by 60pc in the current year. Petra also maintained its output target of 5m carats by 2019, compared with production of 2.2m carats in the year to June 2012.

Petra shares have been on a volatile journey since they were named as a tip of the year in January. The year started off very well and the shares soared to 188.2p in March – a 2012 gain of 64pc.

The shares were boosted by a recovery in the diamond price and market cheer about the group's production profile over the next few years.

However, the resurgence of the eurozone debt crisis prompted diamond prices to head south. The shares have moved down so they are now 11pc lower than where they were at the start of the year. Such a sharp negative move looks unwarranted. Yes, the cut in near-term guidance is a negative as it has made some wonder whether the 2019 target is achievable. But the company believes it is and management has a history of being pretty good with their guidance, despite the recent statement.

Once the current sovereign debt fears recede, diamond prices are likely to recover, as they did in 2011.

However, prices are likely to remain flat in the second half of 2012, despite the usual boost from festive holidays and the Indian wedding season.

After the recent fall, Petra shares are now trading on a 2013 earnings multiple of 10.3, falling to 6.9 in 2014. The company does not pay a dividend.

With the market's current backdrop, it can be argued that an easing back in production, with the consequent strengthening of the balance sheet because of lower spending, is not actually such a bad thing.

When diamond prices recover, as they should once there is an easing of global debt fears, the shares should rebound substantially.

They are now 15pc lower than when Questor last recommended a purchase, but the recommendation remains the same. Buy.

Mining Sector: Petra Diamonds up after 44% jump in revenues
StockMarketWire.com
Petra Diamonds (LON:PDL) shares were up in late afternoon trading after it reported that revenues were up 44% to $316.9m in the year to end-June (2011: $220.6m).

Profit from mining activity was up 35% to $103.3m (2011: $76.4m) on production up 98% to 2,208,862 carats (FY 2011: 1,117,795).

Operating cashflow was up 57% to $79.9m (2011: $50.9m).

Adjusted EBITDA rose 35% to $90.3m (2011: $67.1m).

Adjusted EPS was 7.82 cents per share profit (2011: 8.41 cents per share profit).

Basic EPS: 0.48 cents per share loss (2011: 12.83 cents per share profit).

Loss after tax was $2.1m (2011: $59.2m), affected by unrealised foreign exchange losses of $38.6m and non-recurring transaction costs of $3.1m.

Cash at bank at 30th June 2012 was $47.3m (2011: $324.9m).

Bank debt was $65.4m (2011: $69.6m); available but undrawn bank facilities (30th June 2012): $66.3m (2011: $19.9m).

Diamond inventory at period end was $24.5m (2011: $13.3m).

Production up 98% to 2,208,862 carats (FY 2011: 1,117,795).

Capex was $138.8m (2011: $110.9m) (including interest capitalised), within the Company's expectations and in accordance with the roll-out of the Group's expansion programmes.

Petra stepped-up from AIM to the Main Market of the London Stock Exchange in December 2011 and was subsequently included in the FTSE 250 Index in March 2012.

Petra said whilst the rough diamond market remains under pressure as the current economic uncertainty continues, it believes the medium to long-term outlook remains positive due to the strong supply/demand fundamentals.

Chart looks great....one to go long on....

Nice rise....more to come.....

Another one which has done well recently and Macquarie note still positive on this stock, as is Investec.
Investec today reaffirms its buy investment rating on Petra Diamonds Ltd (LON:PDL) and raised its price target to 141p (from 122p).

Panmure Gordon today reaffirms its hold investment rating on Petra Diamonds Ltd (LON:PDL) and raised its price target to 120p (from 112p).

StockMarketWire.com
Petra Diamonds said it has delivered another firm production quarter in Q3 and that it has hiked its FY 2016 production target to 3.6-3.65 Mcts, further to the integration of the Kimberley Mines assets.

"We are excited about our partnership in Kimberley, given the potential for long-term sustainable operations to the benefit of employees and the local communities there," said CEO Johan Dippenaar.

"Our expansion programmes remain on track and the opening up of undiluted mining areas has continued to yield improved grades at both Finsch and Cullinan.

"The construction of the new plant at Cullinan is also on track, and we remain highly focused on delivering the capital projects on time and within budget.

"Petra is currently near the end of its peak Capex year and the Group is confident that its revised covenant and debt facility levels are aligned to successfully complete its expansion programmes."

Further highlights for the period Jan. 1 to March 31 are given below:
* Production up 26% to 995,905 carats (Q3 FY 2015: 791,443 carats); Q3 production favourably impacted by production from the Kimberley tailings operations attributable to Petra following completion of the Kimberley Mines acquisition in January 2016. Production for nine months to 31 March 2016 up 10% to 2,625,308 carats (nine months to 31 March 2015: 2,392,511 carats).

* Production guidance for FY 2016 increased to 3.6 - 3.65 Mcts from 3.3 - 3.4 Mcts following the initial integration of the Kimberley Mines assets.

* Revenue up 25% to US$120.5 million (Q3 FY 2015: US$96.1 million), due to increased sales volumes and the sale of the 32.33 carat pink diamond from Williamson for US$15 million. Revenue for nine months to 31 March 2016 down 12% to US$274.4 million (Q3 FY 2015: US$311.0 million).

* Diamonds sold increased 13% to 937,526 carats (Q3 FY 2015: 826,815 carats) further to the initial integration of the Kimberley Mines assets.

* Rough diamond prices up ca. 3.5% on a like for like basis in comparison to the average for H1 FY 2016, due to an improvement in rough diamond market conditions.

* Expansion programmes, including the Cullinan plant project, remain in line with expectations.

* Cash at bank at 31 March 2016 of US$39.0 million (31 March 2015: US$41.8 million), diamond inventories of ca. US$54.3 million (31 March 2015: ca. US$37.3 million) and diamond debtors of US$46.0 million (31 March 2015: US$15.0 million).

* Net debt at 31 March 2016 of US$395.6 million (31 March 2015: US$99.3 million). The Company has bank facilities undrawn and available of US$114.2 million (31 March 2015: US$91.1 million), split as to ZAR1.6 billion and US$6.2 million.

* Agreement reached post Period end with lender group for improved covenant measurements regarding the Company's senior lender facilities (refer to the table on page 6 for further information).

Barclays Capital today reaffirms its overweight investment rating on Petra Diamonds Ltd (LON:PDL) and raised its price target to 145p (from 125p).

StockMarketWire.com
Petra Diamonds (PDL) recovered a 121.26 carat white diamond at the Cullinan mine in South Africa.

The stone is a Type II diamond of exceptional colour and clarity, and is an example of the large, high-quality diamonds for which the mine is known.

The diamond will be sold in the last tender of Petra's 2016 financial year, which is currently underway in Johannesburg.

This diamond, along with various other high-quality stones that will also be included in the tender, will deliver an improved product mix at the mine in the last quarter of 2016.

StockMarketWire.com
Petra Diamonds and Ekapa Mining have agreed to combine their respective operations in the Kimberley area into an unincorporated JV named the Kimberley Ekapa Mining Joint Venture (KEM JV).

"These assets fit well with the Group portfolio, given Petra's existing Kimberley Underground operations in the area," said CEO Johan Dippenaar.

"Importantly, the transaction demonstrates our commitment to ensuring a sustainable future for the diamond mining industry in Kimberley, which will benefit the Kimberley Mines workforce and local community.

"The KEM JV is expected to bring significant synergies to the operations at Kimberley, including the ability to increase throughput and reduce operating costs, thereby extending the operation's mine life.

"Further production guidance will be included in the Company's FY 2016 Trading Update and FY 2017 Market Guidance announcement, to be released on 25 July 2016."

The respective operations comprise:
1. Petra's Kimberley Underground mines (via its subsidiary Crown Resources (Pty) Ltd);

2. Ekapa Mining's tailings operations (via its subsidiaries Super Stone Mining (Pty) Ltd ("Super Stone Mining"), and Kimberley Miners Forum (Pty) Ltd); and

3. Kimberley Mines tailings operations (via Ekapa Minerals (Pty) Ltd owned 50.1% Ekapa Mining and 49.9% Petra)

finnCap today reaffirms its buy investment rating on Petra Diamonds Ltd (LON:PDL) and set its price target at 213p

StockMarketWire.com
Petra Diamonds has recovered a 138.57-carat Type IIa, D colour diamond at the Cullinan mine in South Africa. The diamond will be offered for sale as part of Petra's next sales process in late August in Johannesburg.

i'ld rather have the diamond than the company's shares :-)