Petra Sells 20ct. Blue Diamond for $15M

RAPAPORT… Petra Diamonds sold a 20-carat blue diamond from its
Cullinan mine in South Africa for just under $15 million. 


“We are very pleased with this result, which is in line with
our expectations and confirms the resilience in the value of very high-quality
blue diamonds,” Petra CEO Richard Duffy said Friday. “We look forward to following
this exceptional stone’s journey to its polished form.”


An undisclosed leading diamond company purchased the 20.08-carat, type
IIb, gem-quality stone at tender in Johannesburg, South
Africa, for $14.9 million, or $741,000 per carat.


“This is an encouraging result and shows that there is still
strong demand for special diamonds,” noted investment bank Berenberg. “This is
positive for Petra and puts extra cash on the balance sheet to work down debt…. We believe that today’s announcement is an undoubted positive for the shares.” Petra’s stock price rose 10% Friday.


The miner recovered the stone from the western portion of
Cullinan in September. At the time, Berenberg estimated the selling price at
$10 million to $15 million, while Shore Capital forecast it would fetch between
$13 million and $15 million. 

The company also plans to restructure its
operation, implementing a flatter management structure, whereby the head of
each mine will report directly to Duffy. As a result, the company has
eliminated the position of chief operating officer, and Luctor Roode, who held
that position, will leave Petra with immediate effect, the miner said.

Image: The 20.08-carat blue Cullinan diamond. (Petra Diamonds)