Petra Diamonds have sounded an upbeat note with diamond prices significantly higher.

Petra posted a 24% rise in gross mine revenue to $220.6-million for the year to June, mainly on a steady increase in rough-diamond prices since last October. Revenue of $90-million in the first half rose to $130.6-million in the second half.

Gross carats sold were up 4% to 1174825 and gross production was down 4% to 1116965 carats.

CEO Johan Dippenaar said: "The outlook for the diamond market looks positive."

The group agreed with De Beers in January to acquire the Finsch mine in South Africa. Dippenaar said Petra expected to complete the purchase in "coming weeks".

Finsch would more than double annual carat production and increase the resource base to more than 300million carats valued at about $56.5-billion. Dippenaar expected Petra to deliver five million carats by 2019.

"With the closure of the Finsch acquisition expected in the coming weeks, the company remains on track to more than double production in the 2012 financial year, and is targeting four million carats in the 2014 financial year and more than five million carats by 2019."

Dippenaar said the group intended to move from the Alternative Investment Market to the London Stock Exchange's main market before December.

"Petra has once again recorded significant growth in revenue, reflecting the health of the rough diamond market," he said.

While production was relatively flat in the period, he expected "a further step-change in output" for financial 2012 with the Finsch acquisition expected to be finalised shortly.

With most industry commentators and major producers expecting diamond demand to outpace supply, Petra's growth profile would put it in a strong position to "capitalise on these very robust fundamentals". - I-Net Bridge