Petra Recovers 425ct. Diamond

RAPAPORT... Petra Diamonds has unearthed a 425.10-carat white diamond atits Cullinan mine in South Africa, it said Friday. The D-color, type II, gem-quality stone comes from the samemine that produced the 3,106-carat Cullinan diamond in 1905, the largest gem-qualitydiamond ever recovered. The stone won't be sold until the fourth fiscal quarter ending June 30. However, analysts have already issued early estimates. Berenberg has placed thediamond's value at $8 million to $12 million. BMO Capital Markets said it couldbe worth more than $15 million, while RBC Capital Markets has valued it at $25million to $35 million, according to Bloomberg. Earlier this month, Petra recovered a 100.83-carat, D-colorstone, as well as a 6.12-carat blue stone, both from Cullinan. In January, Petra reported that average prices at Cullinan had dropped 31% to $96 per carat in its first fiscal half, compared with an average of $140 per carat for the previous nine and half years. The miner's stock slipped 15% following the report, with investors wary of the company's ability to recover large stones. The share price rose 8% Friday following the announcement. Image: The 425-carat diamond. (Petra Diamonds)