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98Petra Diamonds Limited Annual Report and Accounts 2012Company AccountsGroup AccountsCorporate GovernanceOperational ReviewBusiness ReviewDiscover Petra Diamonds12. Earnings per share continuedSharesSharesDilutive effect of potential ordinary shares14,411,63416,034,806Weighted average number of ordinary shares in issue used in diluted EPS516,299,188430,749,844US centsUS centsBasic (loss)/profit per share - US$ cents(0.48)12.83Diluted (loss)/profit per share - US$ cents(0.48)12.35In the current year, the number of potentially dilutive ordinary shares, in respect of employee share options, Executive Director share award schemes and warrants is 14,411,634. These potentially dilutive ordinary shares may have a dilutive effect on future earnings per share. There are no share options and warrants that have been excluded from the potentially dilutive ordinary shares of 14,411,634 (30 June 2011: 16,034,806). There have been no significant post balance sheet changes to the number of options and warrants to impact the dilutive number of ordinary shares. The Group was loss making for the year ended 30 June 2012 and therefore the basic and diluted loss per share are the same as potentially dilutive shares are anti-dilutive.13. Adjusted earnings per shareIn order to show results from operating activities on a consistent basis, an adjusted earnings per share is presented which excludes certain items as set out below. It is emphasised that the adjusted earnings per share is a non-GAAP measure. The Petra Board considers the adjusted earnings per share to better reflect the underlying performance of the Group. The Company's definition of adjusted earnings per share may not be comparable to other similarly titled measures reported by other companies.Numerator2012US$2011US$(Loss)/profit for the year(2,409,520)53,193,664Adjustments:Net unrealised foreign exchange loss/(gain) (note 9)38,604,888(18,600,253)Transaction costs (note 7)3,070,563273,385Adjusted profit for the year39,265,93134,866,796DenominatorSharesSharesWeighted average number of ordinary shares used in adjusted basic EPSAs at 1 July499,874,009352,803,021Effect of shares issued during the year2,013,54561,912,017As at end of year501,887,554414,715,038SharesSharesDilutive effect of potential ordinary shares14,411,63416,034,806Weighted average number of ordinary shares in issue used in diluted adjusted earnings per share516,299,188430,749,844US centsUS centsAdjusted basic profit per share - US$ cents7.828.41Adjusted diluted profit per share - US$ cents7.618.09Notes to the Annual Financial StatementsFor the year ended 30 June 2012 continued

Annual Report and Accounts 2012 Petra Diamonds Limited99Operational ReviewCorporate GoDiscover Petra DiamondsBusiness ReviewvernanceGroup AccountsCompany Accounts14. Property, plant and equipmentComputersAssetsPlant andPlant andand officeMotorMineralundermachinerymachineryequipmentvehiclespropertiesconstructionminingexplorationexplorationexplorationminingminingUS$ millionassets1assetsassetsassetsassets2assets3TotalCostBalance at 1 July 2010 258.1 1.2 1.2 0.2 117.4 31.6 409.7Exchange differences28.60.2--5.15.439.3 Impairment (reversed/raised) (note 8)3.4---8.2-11.6 Additions46.1-0.10.1-64.6110.9 Disposals (3.0)-----(3.0) Balance at 30 June 2011 333.2 1.4 1.3 0.3 130.7 101.6 568.5Balance at 1 July 2011 333.2 1.4 1.3 0.3 130.7 101.6 568.5Exchange differences(53.6) (0.2) (0.3) (0.1)(21.2) (18.1) (93.5) Business combination222.8 -----222.8 Additions59.60.10.40.3-78.4138.8Transfer of assets under construction44.2----(44.2)-Disposals (5.8) -- ---(5.8) Balance at 30 June 2012600.4 1.3 1.4 0.5 109.5 117.7 830.8 DepreciationBalance at 1 July 2010 29.6 (0.1) 0.4 0.1 8.7 - 38.7 Exchange differences5.30.10.1-1.1- 6.6 Reversal of impairment (note 8)0.8---0.8-1.6 Disposals (2.1)-(0.1)---(2.2) Provided in the year21.80.10.2-0.3-22.4 Balance at 30 June 2011 55.4 0.1 0.6 0.1 10.9 - 67.1 Balance at 1 July 2011 55.4 0.1 0.6 0.1 10.9 - 67.1 Exchange differences(10.9) - (0.1) - (1.8) - (12.8) Disposals (5.0) ---- - (5.0) Provided in the year39.8 - 0.2 0.1 0.9 -41.0 Balance at 30 June 201279.3 0.1 0.7 0.2 10.0 - 90.3 Net book valueAt 30 June 2011 277.8 1.3 0.7 0.2 119.8 101.6 501.4At 30 June 2012521.1 1.20.7 0.3 99.5 117.7 740.5 1. The mining assets are secured against the loan facilities as set out in note 22.2. Mineral properties are in respect of various mines within the Group and the useful life, based on current life of mine plans, is disclosed in note 1.4. 3. Assets under construction include refurbishments and expansion of mining property, plant and equipment at the Cullinan, Finsch, Kimberley Underground, Koffiefontein and Williamson mines. The contractual commitments the Group had at year end were in respect of assets under construction and future Capex projects of US$28.5 million (30 June 2011: US$11.6 million). Borrowing costs of US$6.3 million (30 June 2011: US$3.5 million) have been capitalised to assets under construction.15. Intangible assets US$ millionTotalCostBalance at 1 July 2011 and 30 June 201214.5 AmortisationBalance at 1 July 2011 and 30 June 2012(14.5)Net book valueAt 30 June 2011-At 30 June 2012-Prospecting licencesProspecting licences in Botswana are fully amortised. The Group continues to conduct exploration activities in Botswana. During the year exploration expenditure of US$3.1 million (30 June 2011: US$1.4 million) was expensed in respect of exploration activities within Botswana.