Petra Recovers 425ct. Diamond

RAPAPORT… Petra Diamonds has unearthed a 425.10-carat white diamond at
its Cullinan mine in South Africa, it said Friday.



The D-color, type II, gem-quality stone comes from the same
mine that produced the 3,106-carat Cullinan diamond in 1905, the largest gem-quality
diamond ever recovered.

The stone won’t be sold until the fourth fiscal quarter ending June 30. However, analysts have already issued early estimates. Berenberg has placed the
diamond’s value at $8 million to $12 million. BMO Capital Markets said it could
be worth more than $15 million, while RBC Capital Markets has valued it at $25
million to $35 million, according to Bloomberg.


Earlier this month, Petra recovered a 100.83-carat, D-color
stone, as well as a 6.12-carat blue stone, both from Cullinan.

In January, Petra reported that average prices at Cullinan had dropped 31% to $96 per carat in its first fiscal half, compared with an average of $140 per carat for the previous nine and half years. The miner’s stock slipped 15% following the report, with investors wary of the company’s ability to recover large stones.

The share price rose 8% Friday following the announcement. 


Image: The 425-carat diamond. (Petra Diamonds)