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Annual Report and Accounts 2011

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Key Performance Indicators

Petra uses various performance measures to help evaluate the performance of the business on a continuous basis and the following performance measures are those the Board believe most effectively evaluate the performance of the Group as a whole.

Safety

Group Lost Time Injury Frequency Rate ("LTIFR")

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The safety of employees is the top priority for Petra's management. FY 2011's LTIFR showed an improvement on the prior year's performance, demonstrating management's focus on this area across all of Petra's operations. However, very regrettably, there was a fatality at the Koffiefontein mine in January 2011. Management is striving for zero harm in the workplace.

Rough diamond production (gross)

Carats ('000s)

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After several years of strong growth, production was relatively flat in FY 2011 due to a strategic focus on "value" as opposed to "volume" production, issues at Koffiefontein and Kimberley Underground, and unseasonably heavy rainfall in South Africa. The completion of Finsch in September 2011 means that the Company expects to increase production to over 2 Mcts in FY 2012.

Revenue (gross)

US$ million


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Gross mine revenue was up 24% to US$221 million, being mainly due to the steady increase in rough diamond prices from October 2010 to the end of June 2011, as evidenced by revenue of US$90 million in the first half rising to US$131 million in the second half. Adjusting for the exceptional sale of the US$35 million Cullinan Heritage diamond in FY 2010, revenue would have been up 55%.

On-mine profit

US$ million


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FY 2011's mining profit reflects the strengthening in diamond prices throughout the year, combined with Petra's stringent cost control. The generation of an on-mine profit in FY 2009 at the height of the global economic downturn demonstrates the robustness of Petra's assets and the quality of its management team.


Operating cashflows

US$ million


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Petra is focused on generating strong operating cashflows and as Finsch comes on-line and production increases, substantial operating cashflow growth is expected. Petra's strategy is to apply these operating cashflows to fund the Group's capex profile which will lay the foundations for long-term sustainable production growth.

Capex

US$ million


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Petra's strategy is to substantially increase its production profile, which will be achieved by the expansion and development of its major mines, specifically Cullinan, Finsch and Williamson. It is key to the Group's production expansion that capex spend is achieved and development rolled out in line with stated business plans.