I have to admit to me these fundamentals look very strong, especially carat per tonne, and value per carat numbers:-
"Current Operations
The Syferfontain Kimberlite. 100% owned - bought as part of a package from Goldfields - area 3.4 acres - estimated reserves 3.8m tons - work done suggests up to 20 carats per 100 tons - full feasibility to take six months, cost £600,000 - completion early next year. Earnings potential for Petra about 3p per share, assuming production of 5000 cts/month, value $80/ct.
The Vaal River and Orange River alluvials. Cost of these two £3½ -£4 million. Funded by the Minerva group of diamond dealers. Vaal River is already in productionat 6,000 carats per yearwhich will be increased to 12,000 carats at the end of the first year. Average carat value $600 - resource 10m tons gravel or nmore. Orange River will also run at 12,000 carats per year starting later this yearand building to full production by the end of next year. The resource is 20m tons of gravel - value per carat $600 -$800. these two operations are capable of generating earnings of 10p -12p per share and both have minimum life of 10 years.
Petra gained the nfidence of the Minerva group by demonstrating its competence to run an operation at Alexkor. Given this high profile demonstration of competence Petra is likely to attract more offers of this nature since the diamond dealers are now looking for a dirct suply of rough un the new market being proposed by De Beers in which LVMH De Beers will be in direct competition for retail sales."
