Sedibeng (Messina And Dancarl)

Petra Dimaonds reported operational results for the half-year period ended Dec31/09 at its South African operations. The combined operations of Cullinan, Koffiefontein, Williamson and Fissure mines produced 614,594 carats of diamonds. With the recovery of the 507 carat Cullinan Heritage in September 2009, the Cullinan mine has now produced four of the world's top 20 largest high quality gem diamonds: The Cullinan (3,106 carats rough), The Golden Jubilee (755 carats rough), The Centenary (599 carats rough) and The Cullinan Heritage (507 carats rough). To ensure the best possible chance to recover further such important gems, Petra re-commissioned the large diamond recovery plant at Cullinan in December 2009. This is now in full operation and a 130 carat rough diamond was recovered in January. In Tanzania its Williamson mine produced a total of 68,358 carats of diamonds of which a very few were small fancy pink diamonds, including a 2.38 carat fancy 'bubblegum' pink which sold for close to US$40,000 per carat.

Petra reported that for the year ended Jun30/09 the Fissure Mines produced a total of 71,274 carats which is 35% lower than the previous year. At the three fissure mines focus for the period shifted from volume of carats produced to optimisation of revenues by placing emphasis on grade and final recovery. This ensured that the average value per carat of US$186 achieved for the period was relatively unaffected by the slump in the market. A number of exceptional diamonds were recovered in the Period, including a 126.69 carat diamond which sold for US$5.25 million. The current life of mine plans incorporate Sedibeng at 13 years, Star at 18 years and Helam at 22 years. Diamond production is estimated at 126,000 carats for 2010 and increasing to 165,000 carats by 2015. Thereafter it will remain stable until 2022 when Sedibeng is depleted, with production gradually dropping off. The Sedibeng life of mine is based on the current resource statement which only accounts for 6 levels and can be increased once new levels are added on.

Produced 37,622 carats at the Fissure Mines (Helam, Sedibeng and Star) for the 6 month period and sold 39,398 carats, generating revenue of US$9.5 million. These mines regularly produce diamonds of exceptional quality and during the period a 126.69 carat diamond sold for US$5.25 million. The average value per carat achieved for the period was US$240, in comparison to US$182 in the correspondent period to 31 December 2007. This reflects the company's decision to refocus attention at the fissure mines from volume of carats to optimisation of revenues by effecting improvements to grade and the final recovery, combined with the lower amount of low value Helam diamonds (approximately US$ 80 goods) sold in the period. At the fissure mines, the company's attention has shifted from volume of carats produced to optimization of revenues by focus on grade and final recovery, resulting in the average value per carat achieved increasing from US$136 per carat for the year ending 30 June 2007 to $211 per carat for the period. Production for the year at the fissure mines was 110,665 carats, lower than production for the financial year to June 2007 of 136,051 carats. This was due to reduced tonnages hauled at the Helam mine, which is the smallest contributor of the company's producing operations by value. The portfolio of fissure mines also produces exceptional quality diamonds. A number of such stones were recovered in the last year, including a 126.69 carat diamond which sold in the most recent tender for US$5.25 million. (Sep23/08)