Petra finds 39-carat blue diamond at Cullinan mine

 

South Africa’s Petra Diamonds has found yet another big rock at its iconic Cullinan mine, a 39.34 carat Type IIb gem said to be of “exceptional quality” due to both its colour and clarity.

The miner didn’t indicate the diamond’s potential value but said it would sell it in a special tender.

Cullinan is known as the world’s most important source of blue diamonds, as well as being the birthplace of the 3,106-carat Cullinan diamond, which was cut to form the 530-carat Great Star of Africa.

The operation also yielded the 317-carat Second Star of Africa. They are the two largest diamonds in the British Crown Jewels.

Source: DCLA

Petra finds 39-carat blue diamond at Cullinan mine

 

South Africa’s Petra Diamonds has found yet another big rock at its iconic Cullinan mine, a 39.34 carat Type IIb gem said to be of “exceptional quality” due to both its colour and clarity.

The miner didn’t indicate the diamond’s potential value but said it would sell it in a special tender.

Cullinan is known as the world’s most important source of blue diamonds, as well as being the birthplace of the 3,106-carat Cullinan diamond, which was cut to form the 530-carat Great Star of Africa.

The operation also yielded the 317-carat Second Star of Africa. They are the two largest diamonds in the British Crown Jewels.

Source: DCLA

Petra sells 299 carat diamond for $12.18 million

 

Petra Diamonds has sold a 299.3 carat diamond recovered in January at its iconic Cullinan mine, in South Africa, to Belgium-based Stargems DMCC for $12.18 million.

The exceptional Type 11a white gem-quality rock achieved a price of $40,701 per carat, which exceeds the $34,386/ct received for the 424.89 carat “Legacy of the Cullinan Diamond Mine” in May 2019.

The freshly sold find adds to other most famous diamonds unearthed at Cullinan, such as “The Blue Moon of Josephine”. This 29.6 carat blue diamond sold for $48.5 million in 2015, a world record price per carat for any diamond sold at an auction at the time.

The company’s board approved such reorganization in January, and Petra expects to finish the process around the end of March.

Petra’s shares slumped by more than 80% last year as the covid-19 pandemic battered the global diamond sector, with mines forced to shut down while consumer demand continued to fall.

Source: DCLA

Petra sells 299 carat diamond for $12.18 million

 

Petra Diamonds has sold a 299.3 carat diamond recovered in January at its iconic Cullinan mine, in South Africa, to Belgium-based Stargems DMCC for $12.18 million.

The exceptional Type 11a white gem-quality rock achieved a price of $40,701 per carat, which exceeds the $34,386/ct received for the 424.89 carat “Legacy of the Cullinan Diamond Mine” in May 2019.

The freshly sold find adds to other most famous diamonds unearthed at Cullinan, such as “The Blue Moon of Josephine”. This 29.6 carat blue diamond sold for $48.5 million in 2015, a world record price per carat for any diamond sold at an auction at the time.

The company’s board approved such reorganization in January, and Petra expects to finish the process around the end of March.

Petra’s shares slumped by more than 80% last year as the covid-19 pandemic battered the global diamond sector, with mines forced to shut down while consumer demand continued to fall.

Source: DCLA

Petra Diamonds’ investors back restructuring

 

Struggling Petra Diamonds (LON: PDL) said on Wednesday its investors have approved plans to restructure the business, a move that aims to provide the miner with a more stable, deleveraged capital structure to ensure its short and long-term viability.

Over 95% of shareholders voted in favour of a resolution that includes reducing authorized share capital of the company by cutting the nominal value of all ordinary shares from 10p to 0.001p.

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It also involves an increase to Petra’s authorized share capital through the creation of 8.5-million ordinary shares and the authorization for directors to allot ordinary shares up to £88,447 ( just over 8.8-million ordinary shares).

Hefty debt
Petra Diamonds’ weak financial position, a product of stagnant demand and heavy borrowing to expand its mines, particularly the iconic Cullinan, pushed it to put itself up for sale in June. Petra reversed the decision in October, opting instead for the debt-for-equity restructuring approved Wednesday.

The company noted it expected to complete the reorganization in the first quarter of 2021.

Petra’s shares slumped by more than 80% last year as the covid-19 pandemic battered the global diamond sector, with mines forced to shut down while consumer demand continued to fall.

The diamond miner, which has three operations in South Africa and one in Tanzania, is also dealing with allegations of human rights abuses at its Williamson mine in Tanzania, resulting from the actions of its security guards.

Source: DCLA

Petra Diamonds’ investors back restructuring

 

Struggling Petra Diamonds (LON: PDL) said on Wednesday its investors have approved plans to restructure the business, a move that aims to provide the miner with a more stable, deleveraged capital structure to ensure its short and long-term viability.

Over 95% of shareholders voted in favour of a resolution that includes reducing authorized share capital of the company by cutting the nominal value of all ordinary shares from 10p to 0.001p.

SIGN UP FOR THE PRECIOUS METALS DIGEST
It also involves an increase to Petra’s authorized share capital through the creation of 8.5-million ordinary shares and the authorization for directors to allot ordinary shares up to £88,447 ( just over 8.8-million ordinary shares).

Hefty debt
Petra Diamonds’ weak financial position, a product of stagnant demand and heavy borrowing to expand its mines, particularly the iconic Cullinan, pushed it to put itself up for sale in June. Petra reversed the decision in October, opting instead for the debt-for-equity restructuring approved Wednesday.

The company noted it expected to complete the reorganization in the first quarter of 2021.

Petra’s shares slumped by more than 80% last year as the covid-19 pandemic battered the global diamond sector, with mines forced to shut down while consumer demand continued to fall.

The diamond miner, which has three operations in South Africa and one in Tanzania, is also dealing with allegations of human rights abuses at its Williamson mine in Tanzania, resulting from the actions of its security guards.

Source: DCLA

Botswana Diamonds acquires Sekaka from embattled Petra

 

Botswana Diamonds (LON:BOD) said on Monday it had completed the acquisition of Sekaka, the exploration vehicle that belonged to embattled rival Petra Diamonds (LON:PDL) and which held three prospecting licenses in the country’s Central Kalahari Game Reserve.

In one of its licenses, Sekaka had singled out the KX36 kimberlite pipe, which is situated about 70 km from Gem Diamonds’ Ghaghoo mine, and 260 km north-west of Botswana’s capital Gaborone.

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Sekaka also had a recently built, fit-for-purpose bulk sampling plant on-site that includes crushing, scrubbing, dense media separation circuits and X-ray recovery modules within a secured area.

The acquisition includes an extensive database, built up over 15 years of exploration.

Botswana Diamonds believes the information contained in the database will provide substantial support to its future kimberlite exploration activities in the mining-dependent country, the world’s second-largest diamond producer.

“We are delighted that this acquisition has now closed. This paves the way to explore commercial development options for KX36 and begin to evaluate the extensive database in conjunction with ours to discover more kimberlites in prime diamond real estate,” chairperson John Teeling said in a media statement.

Diamond exports from the southern African nation dropped 42% to $1.49 billion in the first nine months of this year as production fell 29% to 12.3 million carats due to covid-related restrictions.

Botswana’s mining sector provides a fifth of the country’s GDP and 80% of its foreign exchange earnings.

Mounting woes
Petra Diamonds, the former owner of Sekaka, has been struggling for over two years. Its weak financial position pushed it to shed non-core assets and put itself up for sale in June.

The company reversed the decision in October, opting instead for a debt-for-equity restructuring. The deal would leave existing shareholders with just 9% of the company.

Petra is also dealing with allegations of human rights abuses at its Williamson mine in Tanzania, resulting from the actions of its security guards.

It recently reported a 36% fall in revenue and a net loss of $223 million (168.7 million pounds) for the year ended June 30, as the coronavirus pandemic deepened the company’s financial woes.

Source: DCLA

Botswana Diamonds acquires Sekaka from embattled Petra

 

Botswana Diamonds (LON:BOD) said on Monday it had completed the acquisition of Sekaka, the exploration vehicle that belonged to embattled rival Petra Diamonds (LON:PDL) and which held three prospecting licenses in the country’s Central Kalahari Game Reserve.

In one of its licenses, Sekaka had singled out the KX36 kimberlite pipe, which is situated about 70 km from Gem Diamonds’ Ghaghoo mine, and 260 km north-west of Botswana’s capital Gaborone.

SIGN UP FOR THE PRECIOUS METALS DIGEST
Sekaka also had a recently built, fit-for-purpose bulk sampling plant on-site that includes crushing, scrubbing, dense media separation circuits and X-ray recovery modules within a secured area.

The acquisition includes an extensive database, built up over 15 years of exploration.

Botswana Diamonds believes the information contained in the database will provide substantial support to its future kimberlite exploration activities in the mining-dependent country, the world’s second-largest diamond producer.

“We are delighted that this acquisition has now closed. This paves the way to explore commercial development options for KX36 and begin to evaluate the extensive database in conjunction with ours to discover more kimberlites in prime diamond real estate,” chairperson John Teeling said in a media statement.

Diamond exports from the southern African nation dropped 42% to $1.49 billion in the first nine months of this year as production fell 29% to 12.3 million carats due to covid-related restrictions.

Botswana’s mining sector provides a fifth of the country’s GDP and 80% of its foreign exchange earnings.

Mounting woes
Petra Diamonds, the former owner of Sekaka, has been struggling for over two years. Its weak financial position pushed it to shed non-core assets and put itself up for sale in June.

The company reversed the decision in October, opting instead for a debt-for-equity restructuring. The deal would leave existing shareholders with just 9% of the company.

Petra is also dealing with allegations of human rights abuses at its Williamson mine in Tanzania, resulting from the actions of its security guards.

It recently reported a 36% fall in revenue and a net loss of $223 million (168.7 million pounds) for the year ended June 30, as the coronavirus pandemic deepened the company’s financial woes.

Source: DCLA

De Beers Buys Petra Blue Diamonds for $40M

 

De Beers has purchased five rough blue diamonds from Petra Diamonds for more than $40 million in partnership with one of its sightholders.

The miner bought the Letlapa Tala collection together with South African wholesaler and manufacturer Diacore for $40.4 million, split equally between the two companies. The type IIb stones, which originated from Petra’s Cullinan mine in South Africa, weigh a total of 85.6 carats, with the individual diamonds ranging from 9.61 to 25.75 carats, Petra said Wednesday.

The sale price at the November 24 tender exceeded analysts’ predictions. Liberum believed the stones would fetch “in the region of $30 million to $40 million,” while Berenberg predicted approximately $26 million, they told Rapaport News.

“The result of this special tender affirms the very high value placed on blue diamonds,” said Petra CEO Richard Duffy. “We believe this to be the first time that five rough blue diamonds of significant size, color and clarity have been offered for sale at one time, and we are delighted that the collection has been bought in its entirety.”

Diacore, which specializes in manufacturing rare, fancy-color diamonds, has worked with De Beers before. It previously cut the miner’s 203.04-carat De Beers Millennium Star, and has also worked on other well-known stones, such as the CTF Pink Star, a 59.60-carat pink bought by Hong Kong jeweler Chow Tai Fook for $71.2 million in 2017. The manufacturer, with cutting facilities in Botswana, South Africa and Namibia, was also one of the pilot participants in De Beers’ Tracr blockchain initiative. 

“We are excited and humbled to have the opportunity to unlock the unparalleled beauty of these rare and extraordinary natural diamonds and share them with the world,” said Paul Rowley, executive vice president of diamond trading at De Beers. “Cullinan has produced some of the most beautiful diamonds the world has ever seen, and these blue diamonds are no exception.”

De Beers and Diacore will select expert craftsmen to study and work with the diamonds before presenting them to the public, De Beers added.

De Beers previously owned the Cullinan mine. It sold the deposit to Petra for $149 million in 2007.

Source: DCLA

De Beers Buys Petra Blue Diamonds for $40M

 

De Beers has purchased five rough blue diamonds from Petra Diamonds for more than $40 million in partnership with one of its sightholders.

The miner bought the Letlapa Tala collection together with South African wholesaler and manufacturer Diacore for $40.4 million, split equally between the two companies. The type IIb stones, which originated from Petra’s Cullinan mine in South Africa, weigh a total of 85.6 carats, with the individual diamonds ranging from 9.61 to 25.75 carats, Petra said Wednesday.

The sale price at the November 24 tender exceeded analysts’ predictions. Liberum believed the stones would fetch “in the region of $30 million to $40 million,” while Berenberg predicted approximately $26 million, they told Rapaport News.

“The result of this special tender affirms the very high value placed on blue diamonds,” said Petra CEO Richard Duffy. “We believe this to be the first time that five rough blue diamonds of significant size, color and clarity have been offered for sale at one time, and we are delighted that the collection has been bought in its entirety.”

Diacore, which specializes in manufacturing rare, fancy-color diamonds, has worked with De Beers before. It previously cut the miner’s 203.04-carat De Beers Millennium Star, and has also worked on other well-known stones, such as the CTF Pink Star, a 59.60-carat pink bought by Hong Kong jeweler Chow Tai Fook for $71.2 million in 2017. The manufacturer, with cutting facilities in Botswana, South Africa and Namibia, was also one of the pilot participants in De Beers’ Tracr blockchain initiative. 

“We are excited and humbled to have the opportunity to unlock the unparalleled beauty of these rare and extraordinary natural diamonds and share them with the world,” said Paul Rowley, executive vice president of diamond trading at De Beers. “Cullinan has produced some of the most beautiful diamonds the world has ever seen, and these blue diamonds are no exception.”

De Beers and Diacore will select expert craftsmen to study and work with the diamonds before presenting them to the public, De Beers added.

De Beers previously owned the Cullinan mine. It sold the deposit to Petra for $149 million in 2007.

Source: DCLA

Rare Rough Blue Diamonds

 

Recovered from the famous Cullinan Mine in South Africa, these blue diamonds are among the world’s most expensive

Five blue diamonds have been recovered from Petra Diamonds’ famous Cullinan mine in South Africa.

They are among the world’s most expensive diamonds, and were formed deep within the Earth about 400 miles below the surface, which is four times as deep as white diamonds. The element boron, which is what gives the stones their blue colour, combines with carbon and crystallises under extreme pressure and heat.

The sales tender for the five Type IIb blue diamonds will close later this month, on November 24, following viewings in Antwerp, Hong Kong and New York. They weigh 25.75, 21.25, 17.57, 11.42 and 9.61 carats, respectively.

Type II diamonds contain no detectable nitrogen in their chemical structure, which means they boast exceptional transparency.

Blue diamonds are so rare that most people, even in the jewellery industry, never have a chance to see one. It’s incredibly unusual that these five diamonds were all recovered within the space of one week’s production in September.

Their birthplace, the Cullinan mine, is one of the most important sources of blue diamonds. It’s also the origin of the 3,106 carat Cullinan diamond, which was cut to form the 530 carat Great Star of Africa and the 317 carat Second Star of Africa, which are set into the British Crown Jewels.

It’s the first time that five rough blue diamonds have been offered for sale at the same time. In 2013, a 25.5 carat blue diamond was sold by Petra Diamonds for over US$16.9 million.

Source: DCLA

Rare Rough Blue Diamonds

 

Recovered from the famous Cullinan Mine in South Africa, these blue diamonds are among the world’s most expensive

Five blue diamonds have been recovered from Petra Diamonds’ famous Cullinan mine in South Africa.

They are among the world’s most expensive diamonds, and were formed deep within the Earth about 400 miles below the surface, which is four times as deep as white diamonds. The element boron, which is what gives the stones their blue colour, combines with carbon and crystallises under extreme pressure and heat.

The sales tender for the five Type IIb blue diamonds will close later this month, on November 24, following viewings in Antwerp, Hong Kong and New York. They weigh 25.75, 21.25, 17.57, 11.42 and 9.61 carats, respectively.

Type II diamonds contain no detectable nitrogen in their chemical structure, which means they boast exceptional transparency.

Blue diamonds are so rare that most people, even in the jewellery industry, never have a chance to see one. It’s incredibly unusual that these five diamonds were all recovered within the space of one week’s production in September.

Their birthplace, the Cullinan mine, is one of the most important sources of blue diamonds. It’s also the origin of the 3,106 carat Cullinan diamond, which was cut to form the 530 carat Great Star of Africa and the 317 carat Second Star of Africa, which are set into the British Crown Jewels.

It’s the first time that five rough blue diamonds have been offered for sale at the same time. In 2013, a 25.5 carat blue diamond was sold by Petra Diamonds for over US$16.9 million.

Source: DCLA

Petra to sell blue diamonds recovered at Cullinan

 

Petra Diamonds (LON: PDL) announced the launching of a special tender process for the Letlapa Tala Collection, which comprises five blue diamonds sourced from the Cullinan mine in South Africa. 

Cullinan is known as the world’s most important source of blue diamonds, as well as being the place of birth of the 3,106-carat Cullinan diamond, which was cut to form the 530-carat Great Star of Africa and the 317-carat Second Star of Africa, being the two largest diamonds in the British Crown Jewels.

In a press release, Petra said that the name of the new collection actually means ‘blue rock’ in Northern Sotho (commonly known as Pedi), the predominant language spoken in the Cullinan area.

CULLINAN IS KNOWN AS THE WORLD’S MOST IMPORTANT SOURCE OF BLUE DIAMONDS

The collection consists of five Type IIb blue diamonds of 25.75, 21.25, 17.57, 11.42 and 9.61 carats, respectively. Type II diamonds contain no detectable nitrogen in their chemical structure and tend to display exceptional transparency. Type IIb stones contain a small amount of boron, which is what determines their blue colour.

“Blue diamonds are so rare that most people working in the diamond industry have never even seen one,” the media release states. “There are no official statistics on their recovery, so it is therefore even more unusual that these five spectacular stones were all recovered within the space of one week’s production in September 2020.”

According to Petra, this is likely to be the first time that five blue rough diamonds have ever been offered for sale at one time, with buyers being offered the chance to bid either on individual stones, more than one, or for the entire collection.

The Letlapa Tala gems will be available for viewings in Antwerp from October 25 to November 1; Hong Kong from November 5  to November 10; and New York from November 16 to November 20, 2020.

Source: DCLA

Petra to sell blue diamonds recovered at Cullinan

 

Petra Diamonds (LON: PDL) announced the launching of a special tender process for the Letlapa Tala Collection, which comprises five blue diamonds sourced from the Cullinan mine in South Africa. 

Cullinan is known as the world’s most important source of blue diamonds, as well as being the place of birth of the 3,106-carat Cullinan diamond, which was cut to form the 530-carat Great Star of Africa and the 317-carat Second Star of Africa, being the two largest diamonds in the British Crown Jewels.

In a press release, Petra said that the name of the new collection actually means ‘blue rock’ in Northern Sotho (commonly known as Pedi), the predominant language spoken in the Cullinan area.

CULLINAN IS KNOWN AS THE WORLD’S MOST IMPORTANT SOURCE OF BLUE DIAMONDS

The collection consists of five Type IIb blue diamonds of 25.75, 21.25, 17.57, 11.42 and 9.61 carats, respectively. Type II diamonds contain no detectable nitrogen in their chemical structure and tend to display exceptional transparency. Type IIb stones contain a small amount of boron, which is what determines their blue colour.

“Blue diamonds are so rare that most people working in the diamond industry have never even seen one,” the media release states. “There are no official statistics on their recovery, so it is therefore even more unusual that these five spectacular stones were all recovered within the space of one week’s production in September 2020.”

According to Petra, this is likely to be the first time that five blue rough diamonds have ever been offered for sale at one time, with buyers being offered the chance to bid either on individual stones, more than one, or for the entire collection.

The Letlapa Tala gems will be available for viewings in Antwerp from October 25 to November 1; Hong Kong from November 5  to November 10; and New York from November 16 to November 20, 2020.

Source: DCLA

Petra Diamonds shares fall on debt-for-equity deal

 

Petra Diamonds has abandoned plans to sell the business in favour of a debt-for-equity restructuring, it said on Tuesday, sending its shares lower because of the deal’s dilutive effect on existing stakeholders.

The London-listed company, which mines diamonds in South Africa and Tanzania, had put itself up for sale in June as part of the restructuring process but has received no viable offers, it said.

Its shares have slumped by more than 80% this year as the COVID-19 pandemic has battered the global diamond sector, with mines forced to shut down while consumer demand collapsed. The shares opened with an 18% drop and by 0952 GMT were down 3.6%.

Petra said its existing $650 million of bond debt will be partly replaced by up to $337 million of new notes, including $30 million of new money contributed by debtholders.

The remaining note debt will be converted into equity, leaving debtholders with a combined 91% of the company while diluting existing shareholders to a combined stake of only 9%.

“For existing equity holders it is very dilutive, as expected,” wrote Liberum analyst Ben Davis.

Existing shareholders will be diluted to “next to nothing”, Shore Capital analysts wrote.

Peel Hunt analysts took a more optimistic view, saying the restructuring would give Petra a more sustainable balance sheet and help it to benefit from a recovery in markets for rough diamonds. They calculated that Petra would be left with $444 million of gross debt.

Petra said it expects to seal a “lock-up agreement” cementing the terms with the noteholder group and South African lenders in early November. It expects the restructuring to become effective in the first quarter of 2021.

The agreement also includes new governance arrangements and cashflow controls.

Petra Chief Executive Richard Duffy expressed the company’s gratitude to the noteholder group and South African lenders for their agreement in principle to provide “meaningful additional liquidity” in what has been a difficult period.

Source: DCLA

Petra Diamonds shares fall on debt-for-equity deal

 

Petra Diamonds has abandoned plans to sell the business in favour of a debt-for-equity restructuring, it said on Tuesday, sending its shares lower because of the deal’s dilutive effect on existing stakeholders.

The London-listed company, which mines diamonds in South Africa and Tanzania, had put itself up for sale in June as part of the restructuring process but has received no viable offers, it said.

Its shares have slumped by more than 80% this year as the COVID-19 pandemic has battered the global diamond sector, with mines forced to shut down while consumer demand collapsed. The shares opened with an 18% drop and by 0952 GMT were down 3.6%.

Petra said its existing $650 million of bond debt will be partly replaced by up to $337 million of new notes, including $30 million of new money contributed by debtholders.

The remaining note debt will be converted into equity, leaving debtholders with a combined 91% of the company while diluting existing shareholders to a combined stake of only 9%.

“For existing equity holders it is very dilutive, as expected,” wrote Liberum analyst Ben Davis.

Existing shareholders will be diluted to “next to nothing”, Shore Capital analysts wrote.

Peel Hunt analysts took a more optimistic view, saying the restructuring would give Petra a more sustainable balance sheet and help it to benefit from a recovery in markets for rough diamonds. They calculated that Petra would be left with $444 million of gross debt.

Petra said it expects to seal a “lock-up agreement” cementing the terms with the noteholder group and South African lenders in early November. It expects the restructuring to become effective in the first quarter of 2021.

The agreement also includes new governance arrangements and cashflow controls.

Petra Chief Executive Richard Duffy expressed the company’s gratitude to the noteholder group and South African lenders for their agreement in principle to provide “meaningful additional liquidity” in what has been a difficult period.

Source: DCLA

Petra Diamonds recovers five rare large high-quality blue diamonds at Cullinan Mine

 

South Africa’s Petra Diamonds, which put itself up for sale in June, announced on Wednesday it had found five high-quality blue diamonds, but toned down the news by saying the discovery won’t help turn around its fortunes.

Petra, which has been hit by a triple whammy of weak market conditions, power emergencies in the home country and covid-19, found the Type IIb blue diamonds at its flagship Cullinan mine.

The high quality stones, in terms of both their colour and clarity, range in size from 9.6 carats to 25.8 carats, the company said.

The miner didn’t indicate the diamonds’ potential value but said it is considering sale options.

“These finds, whilst a positive development, will not have a material impact on the likely terms of the required long-term solution to improve the group’s capital structure, nor the significant level of equity dilution that existing shareholders are likely to experience in connection with its implementation,” Petra said in the statement.

The company also warned that measures to improve its capital structure could result in significant equity dilution.

Blue stones are among the rarest and most valuable and have lately fetched higher prices than white diamonds. Last year, Petra sold a 20.08-carat blue gem for $14.9 million, or about $741,000 per carat.

“Flexible” approach to sales
Petra was already struggling when the covid-19 pandemic added further pressure to a sector that was just beginning to show some green shots.

The miner tried in 2019 to turn around its fortunes after piling up debt to expand its flagship Cullinan mine in South Africa. The renowned mine, where the world’s largest-ever diamond was found in 1905, produces about a quarter of the world’s gem-quality diamonds. It is also the source of the vast majority of blue stones.

In May, Petra failed to make an interest payment on a $650 million bond, but won some breathing space from creditors who said they would not declare a default until August.

The diamond producer also cancelled May and June tenders because of travel restrictions and low demand from the midstream. While it originally expected to hold a tender in September, Petra said it was still evaluating the optimal route to market for the stones it mines. It added it would release further information to its customer base once a decision about the marketing plan to follow had been made.

For now, the company is taking a “flexible” approach to selling diamonds in light of ongoing travel restrictions triggered by the global pandemic.

Despite the numerous challenges, Petra is targeting a ramp-up to pre-covid-19 production levels. It added it will disclose production targets for 2021 once it reaches a “sustainable level of operational stability.”

Source: DCLA

Petra Diamonds recovers five rare large high-quality blue diamonds at Cullinan Mine

 

South Africa’s Petra Diamonds, which put itself up for sale in June, announced on Wednesday it had found five high-quality blue diamonds, but toned down the news by saying the discovery won’t help turn around its fortunes.

Petra, which has been hit by a triple whammy of weak market conditions, power emergencies in the home country and covid-19, found the Type IIb blue diamonds at its flagship Cullinan mine.

The high quality stones, in terms of both their colour and clarity, range in size from 9.6 carats to 25.8 carats, the company said.

The miner didn’t indicate the diamonds’ potential value but said it is considering sale options.

“These finds, whilst a positive development, will not have a material impact on the likely terms of the required long-term solution to improve the group’s capital structure, nor the significant level of equity dilution that existing shareholders are likely to experience in connection with its implementation,” Petra said in the statement.

The company also warned that measures to improve its capital structure could result in significant equity dilution.

Blue stones are among the rarest and most valuable and have lately fetched higher prices than white diamonds. Last year, Petra sold a 20.08-carat blue gem for $14.9 million, or about $741,000 per carat.

“Flexible” approach to sales
Petra was already struggling when the covid-19 pandemic added further pressure to a sector that was just beginning to show some green shots.

The miner tried in 2019 to turn around its fortunes after piling up debt to expand its flagship Cullinan mine in South Africa. The renowned mine, where the world’s largest-ever diamond was found in 1905, produces about a quarter of the world’s gem-quality diamonds. It is also the source of the vast majority of blue stones.

In May, Petra failed to make an interest payment on a $650 million bond, but won some breathing space from creditors who said they would not declare a default until August.

The diamond producer also cancelled May and June tenders because of travel restrictions and low demand from the midstream. While it originally expected to hold a tender in September, Petra said it was still evaluating the optimal route to market for the stones it mines. It added it would release further information to its customer base once a decision about the marketing plan to follow had been made.

For now, the company is taking a “flexible” approach to selling diamonds in light of ongoing travel restrictions triggered by the global pandemic.

Despite the numerous challenges, Petra is targeting a ramp-up to pre-covid-19 production levels. It added it will disclose production targets for 2021 once it reaches a “sustainable level of operational stability.”

Source: DCLA

Petra Diamonds sells Botswana exploration assets

Petra Diamonds (PDL.L) has agreed to sell its Botswanan exploration assets to Botswana Diamonds (BODP.L) for $300,000 and a 5% royalty on future revenue, the diamond miner, which is in the process of restructuring, said on Monday.

The purchase price will be payable in two equal instalments on or before August 31, 2021 and August 31, 2022, Petra said. Botswana Diamonds has the option to buy out the royalty for $2 million in cash.

Petra’s subsidiary Sekaka Diamonds Exploration (Pty) Limited, which Botswana Diamonds would take over, holds three prospecting licences including the KX36 project, which has an indicated resource of 17.9 million tonnes at 35 carats per hundred tonnes.

Botswana Diamonds managing director James Campbell said KX36 would be the company’s most advanced project in southern Africa, and Sekaka’s exploration database would also be “hugely complementary” to its current activities.

Petra, which has been planning to sell Sekaka since June 2018, said the deal is separate to the sales process it announced last month as part of its restructuring.

“The first tranche of the purchase consideration is not expected to be received until August 2021, making the sale too long-dated to help with Petra’s immediate cash flow challenges,” said BMO analyst Edward Sterck.

The sale still requires approval from the Botswana Competition Commission, ministerial consent in Botswana, and approval from Petra’s lenders and debtholders.

Campbell said he hopes the deal will be sealed by August 31.

Source: DCLA

Petra Diamonds sells Botswana exploration assets

Petra Diamonds (PDL.L) has agreed to sell its Botswanan exploration assets to Botswana Diamonds (BODP.L) for $300,000 and a 5% royalty on future revenue, the diamond miner, which is in the process of restructuring, said on Monday.

The purchase price will be payable in two equal instalments on or before August 31, 2021 and August 31, 2022, Petra said. Botswana Diamonds has the option to buy out the royalty for $2 million in cash.

Petra’s subsidiary Sekaka Diamonds Exploration (Pty) Limited, which Botswana Diamonds would take over, holds three prospecting licences including the KX36 project, which has an indicated resource of 17.9 million tonnes at 35 carats per hundred tonnes.

Botswana Diamonds managing director James Campbell said KX36 would be the company’s most advanced project in southern Africa, and Sekaka’s exploration database would also be “hugely complementary” to its current activities.

Petra, which has been planning to sell Sekaka since June 2018, said the deal is separate to the sales process it announced last month as part of its restructuring.

“The first tranche of the purchase consideration is not expected to be received until August 2021, making the sale too long-dated to help with Petra’s immediate cash flow challenges,” said BMO analyst Edward Sterck.

The sale still requires approval from the Botswana Competition Commission, ministerial consent in Botswana, and approval from Petra’s lenders and debtholders.

Campbell said he hopes the deal will be sealed by August 31.

Source: DCLA