Wednesday 17 September 2014

Petra Sells 122.52-Ct. Blue Diamond for $28M

Petra Sells 122.52-Ct. Blue Diamond for $28M

Sep 16, 2014 2:36 AM By Deena Taylor RAPAPORT... Petra Diamonds has sold a 122.52-carat blue diamond recovered from its Cullinan mine for $27.6 million or $225,269 per carat.

The diamond was sold to a beneficiation partnership, Petra stated. The partnership is 85 percent owned by a diamond manufacturer, who requested to remain anonymous, with the remaining 15 percent owned by Petra.

The miner explained that its polishing partner will immediately pay it 85 percent of the agreed rough diamond sales value of $23.5 million. Petra will record this sum as revenue in its first quarter of fiscal 2015.

“We are pleased to have concluded this arrangement which records an excellent sales value for the rough stone, and also gives Petra exposure to the uplift in value post beneficiation,” said Johan Dippenaar, the CEO of Petra Diamonds.

Once the stone has been cut and polished, it will be re-sold at which time Petra will receive its share of the proceeds after beneficiation and related expenses.