Petra Diamonds Regulatory News (PDL)

13 May 2009 07:00



Petra Diamonds Limited

("Petra Diamonds" or "the Company")

Cullinan blue diamond breaks world records at auction

Petra Diamonds is pleased to announce that the blue diamond produced from the Cullinan mine has sold for US$9,488,754m*, or US$1,349,752 per carat, establishing a new record price per carat for any gemstone sold at auction and the highest price for a fancy vivid blue diamond sold at auction.

The important fancy vivid blue, internally flawless, cushion-shaped diamond weighing 7.03 carats sold yesterday evening as the centrepiece of Sotheby's Magnificent Jewels auction in Geneva. This sale price has surpassed the world record price per carat achieved for any gemstone at auction, which was formerly held by a 3.73 carat, fancy vivid blue pear-shaped diamond which sold for US$1,328,444 per carat at a Sotheby's auction in May 2008. It also surpasses the world record for a fancy vivid blue diamond sold at auction, which was formerly held by a 6.04 carat, fancy vivid blue diamond ring which sold for US$7,981,835 at a Sotheby's auction in October 2007.

Petra Diamonds CEO Johan Dippenaar commented: "The price achieved at the Sotheby's auction for this exquisite, internally flawless blue diamond is a world record by value per carat and the highest price to be achieved by a fancy vivid blue diamond, and reflects how incredibly rare and collectable such an important blue diamond is to the connoisseur. The renowned Cullinan mine continues to captivate the world with spectacular diamonds, building on its legacy as the source of some of the world's most famous gems. This has been a very successful partnership with Sotheby's, one of the pre-eminent names in jewellery sales, and has provided the perfect platform to garner international recognition for a gem of this calibre."

David Bennett, Chairman, Europe & the Middle East, Sotheby's International Jewellery department, commented after the sale: "We are absolutely thrilled with the price achieved for this exceptional stone, which ranks as the highest price ever established for a fancy vivid blue diamond. It has been a real privilege to offer a diamond of this importance as the centrepiece of our sale and we have seen it capture the imagination of collectors around the world - particularly in Hong Kong, New York, London and Geneva, where we have exhibited it over the last few weeks. It has also been very exciting and rewarding to work so closely with Petra Diamonds and to follow the progress of this remarkable gem over the last few months; from its emergence in its initial rough state, through its various stages of cutting and polishing, to its auction success on the international stage this evening."

  The blue diamond ranks among the most important diamonds ever to be offered for sale by Sotheby's. It was cut from a 26.58 carat rough discovered in 2008 at Petra Diamonds' historic Cullinan diamond mine in South Africa, the world's most consistently reliable source of blue diamonds. The Gemological Institute of America (GIA) has graded the stone as fancy vivid blue in colour and internally flawless in clarity, the highest possible grading for a blue diamond.

*includes buyer's premium

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  About Petra Diamonds

Petra Diamonds is a rapidly growing diamond mining group, focused on the African continent. A number of recent acquisitions have established Petra Diamonds as one of the world's largest independent diamond groups by resources, with a total resource base of 265 million carats worth US$27.3 billion (as at September 2008 Resource Statement). The Company's objective is to continue to develop its stature as a leading diamond producer in all of the countries in which it operates.

In South Africa, Petra Diamonds has five producing mines - Cullinan, Koffiefontein, Helam, Sedibeng and Star - and has also reached agreement to acquire, from De Beers, the Kimberley Underground mines. In Tanzania, Petra has recently acquired a 75% interest in the Williamson mine. Petra Diamonds is on track to increase its annual production from 200,000 carats in the year to June 2008 to over 1 million carats in the year to June 2009. 

Petra Diamonds will only commit to working in countries which are members of the Kimberley Process and shareholders can remain assured that the Company's diamonds will only ever be 100% conflict free. Petra Diamonds is listed in London under the share code PDL.