Cullinan Blue Could Fetch $15M, Analysts Say

RAPAPORT... Petra Diamonds will offer a 20.08-carat blue diamond at aspecial tender in Johannesburg next month, with analysts predicting the rough couldattract $15 million.The miner recovered the type IIb, "exceptional" gem-qualitystone at its Cullinan deposit in South Africa last month. It has not given anyfurther information on the diamond's quality."We expect this stone to fetch a good price - we arehoping for at least $13 million to $15 million - despite the rough market'swell-publicized travails," wrote Shore Capital's Yuen Low in a note Monday. "Ifthis proves the case, it should provide a welcome, significant boost to [Petra's fiscal-year]2020 profits."Investment bank Berenberg estimated the rough at $10million to $15 million, based on prices Petra achieved for similar goods fromCullinan in 2013 and 2014. In 2013, it sold a 25.50-carat blue diamond for$663,144 per carat, while the following year it garnered $862,780 per carat fora 29.62-carat stone of the same color."The fact that Petra is holding a special tender for thisdiamond, coupled with some updated pictures, indicates to us that there issignificant upside in the value of the stone, and that there is some potentialfor this diamond to sell for a value similar to those blues," Berenberganalysts said.Viewings of the 20.08-carat diamond will run from November1 to 7 at Petra's marketing offices in Johannesburg. The tender will take placeat the city's Diamond Exchange and Export Centre, beginning on November 8 andclosing at 12 p.m. on November 15.Image: The 20.08-carat blue diamond. (Petra Diamonds)