Petra Diamonds Limited (LON:PDL) has sold the huge 424.9-carat diamond recently discovered at its renowned Cullinan mine in South Africa for just under US$15mln.
The Legacy of the Cullinan Diamond Mine, as the gem is known, was bought by Stargems Group, a diamond cutter in Dubai, and Antwerp-based Choron (Belgium) BVBA.
READ: Petra Diamonds sparkles as it uncovers 425-carat diamond at Cullinan
“This is a significant sale for Petra Diamonds and an endorsement of the quality not only of the Legacy diamond, but also the Cullinan ore body itself, which is known for its exceptional stones,” said chief executive Richard Duffy.
Stargems’ chairman, Shailesh Javeri, added: “The Cullinan diamond mine has produced some of the most iconic diamonds the world has ever seen and as a key client of Petra Diamonds we are honoured to have the opportunity to polish the Legacy of the Cullinan Diamond Mine.”
The diamond, one of a string of high-profile recent finds at Cullinan, is a type II, D-colour gem.
D is the highest colour grade and type II diamonds have no impurities, making stones that tick both boxes extremely rare and therefore expensive.
Below analysts’ initial expectations
Analysts at RBC had initially thought the Legacy diamond would fetch upwards of US$25mln, although they said today that US$15mln wasn’t “necessarily a bad result”.
“What is positive is that the sale revenue will be included with FY19 results helping to offset headwinds from pricing trends in smaller stones,” read a note to clients.
“The recent stream of larger stones from the mine also reaffirms management’s messaging on: 1) the prevalence of these higher-value stone types at Cullinan; and 2) that the mine’s plant is successfully recovering them.”
Investors seemed a little disappointed with the sale price though, with shares down 4.1% to 23.8p in late-afternoon trading on Tuesday.