Petra Diamonds, which announced the recovery of a 425.1-carat D colour, Type II diamond at is iconic Cullinan Mine in South Africa, said it plans to sell the stone during the June quarter.
Petra shares surged after the announcement of the find on Friday. The company has been struggling to pay down mounting debts and the recovery of the large stone is seen as contributing significantly towards that end.
The company said in a press release that the recovery further demonstrates the prevalence of these types of stones in the Cullinan orebody as well as the ability of the mine’s plant to recover the full spectrum of diamonds.
Richard Duffy, a veteran of Anglo American and AngloGold Ashanti has officially taken over as CEO of the company as of April 1. The takeover, announced in February last, saw Duffy working with outgoing CEO Johan Dippenaar in a transition period in the interim.
The announcement of the large stone recovery has been welcomed by investors as many diamond mining firms, especially those producing smaller and more inexpensive stones, have been struggling financially of late. Firestone Diamonds recently announced that it had put its expansion plans for its Liqhobong mine in Lesotho on hold as market conditions didn’t support the expansion.