Petra's Loss Widens in Weak Market

RAPAPORT... Shares in Petra Diamonds slipped 7% in early trading Mondayafter the miner reported its loss had broadened due to a devaluation of itsfour deposits. The company reported a net loss of $258.1 million for theperiod ending June 30, as opposed to a loss of $203.1 million the year before.This was due to the combination of impairment charges - a reduction in the value of an asset- on its Cullinan, Koffiefontein, Finsch and Williamson mines caused byweakening prices for smaller diamonds, and a loss stemming from the ceasing ofoperations and sale of its Kimberley and Helam deposits. Revenue at Petra fell 6% to $463.6 million, with the miner selling3.7 million carats at an average price of $124 per carat. Production for thefiscal year ending June 30 grew 1% to 3.9 million carats.   The company's debt increased to $564.8 million from $554.9 millionat December 31. To help drive efficiency and cut expenses, Petra has launchedProject 2022, a three-year plan to save $150 million to $200 million and paydown its debt. The miner expects diamond prices to stabilize as the upcomingholiday season in the US and China approaches, it noted. Petra realized sales of $61.6 million for its September tender, which occurred after the end of the second half, as prices fell 4% on a like-for-like basis compared with the April-to-June quarter. Petra operates the Cullinan, Finsch and Koffiefontein undergroundmines in South Africa and the Williamson open-pit facility in Tanzania. Image: Inspection work being carried out at Cullianan. (Petra Diamonds)