Another rare diamond found at Petra Diamonds' Cullinan Mine

September 9, 2014

The Cullunan Mine in South Africa has produced yet another stunning diamond, this one a 232.08-carat white diamond that could be worth as much as $16 million.

Shares in Petra Diamonds, which owns the mine, climbed 8 percent on the news, The Guardian reported.

The largest diamond ever found, the 3,106-carat Cullinan diamond that was cut into the stones for Britain’s crown jewels was found at the South African mine in 1905. More recently, the mine produced a 122.52 carat blue diamond, said to be worth more than $35 million. That stone was found earlier this year.

The recent find is Petra's largest white diamond since it unearthed the 507-carat Cullinan heritage in 2009 from the same mine. That rough white diamond was given a "flawless" clarity grade and fetched $35.3 million, a record price for the company.

"We estimate a sales price in the order of $10 million to $15 million, given Gem Diamonds' recent sale of a type-II white at about $70,000 per carat and assuming some losses for cutting/polishing," analysts at Numis Securities said in a note.

"The extra revenue would go straight to the bottom line," Numis said.

Petra, which reported revenue of about $473 million in the previous financial year, declined to specify how much the diamond could fetch.
A company spokesman told Reuters the stone would most likely be bought by a buyer from traditional diamond hubs such as the U.S., Europe, Israel or China, who could cut the stone into polished gems.

"It's more a case of the clients coming to us, rather than us needing to approach clients," he said.

Petra said it expected the diamond, that has no measurable nitrogen impurities to be sold between October and December, the second quarter of its financial year.

The mining company, which has five producing mines in South Africa and one in Tanzania, sold a 29.6 carat blue diamond to the US luxury jeweller Cora International in February for $25.6 million.

Petra has in the past year retrieved some large blue diamonds from Cullinan, which was one of the five non-core mines it bought from Anglo-American Plc's De Beers unit - the world's biggest diamond producer by value.


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