Shares in southern Africa-focused Petra Diamonds (LON:PDL) rose after it revealed it has started selling its three of its South African mines.
The company, which has seven producing mines in South Africa and one in Tanzania with an exploration programme underway in Botswana, will consider bids for Helam, Sedibeng and Star – what it calls ‘The Fissure Mines’.
Shares lifted 2.25 pence to 102.1 pence on the news.
The FTSE 250 firm revealed at the end of July that it no longer considered the mines as core assets, both in terms of their revenues and resource base.
Since the merger with Crown Diamonds back in 2005, the company has been focused on acquiring high-tonnage, long-life kimberlite pipe operations in Cullinan, Finsch, Koffiefontein, Williamson and Kimberley Underground.
This “highly successful” strategy has helped boost the resource base, production and revenues, said Petra.
However, it added that the Fissure Mines have the potential to deliver strong returns if run by an operator who would consider them core assets.
Petra said that the kimberlite mines are of high quality and sustainable, with long strike length and a 50-year track record of production.
The average value per carat of the Fissure Mines is high for kimberlite operations, ranging across each of the mines from US$150 to US$500 per carat last year.
QuestCo, a South Africa-based corporate finance adviser, has been appointed to manage the sale.