Petra Sells 20ct. Blue Diamond for $15M

RAPAPORT... Petra Diamonds sold a 20.08-carat blue diamond from itsCullinan mine in South Africa for just under $15 million, it said Friday. "We are very pleased with this result, which is in line withour expectations and confirms the resilience in the value of very high-qualityblue diamonds," said Petra CEO Richard Duffy. "We look forward to followingthis exceptional stone's journey to its polished form." An undisclosed leading diamond company purchased the typeIIb, gem-quality stone at tender in Johannesburg, SouthAfrica, for $14.9 million, or $741,000 per carat. "This is an encouraging result and shows that there is stillstrong demand for special diamonds," noted investment bank Berenberg. "This ispositive for Petra and puts extra cash on the balance sheet to work down debt.... We believe that today's announcement is an undoubted positive for the shares." Petra's stock price rose 10% Friday. The miner recovered the stone from the western portion ofCullinan in September. At the time, Berenberg estimated the selling price at$10 million to $15 million, while Shore Capital forecast it would fetch between$13 million and $15 million.  The company also plans to restructure itsoperation, implementing a flatter management structure, whereby the head ofeach mine will report directly to Duffy. As a result, the company haseliminated the position of chief operating officer, and Luctor Roode, who heldthat position, will leave Petra with immediate effect, the miner said. Image: The 20.08-carat blue Cullinan diamond. (Petra Diamonds)