Petra Diamonds Limited Shines On “Magnificent” Discovery

Petra Diamonds (LSE: PDL) shares increased by 6% in early trade, after the FTSE 250-listed diamond miner announced the recovery of a 232-carat white diamond at the Cullinan mine in South Africa.

Petra said the stone is “a magnificent example of the large, high quality diamonds for which the mine is known”.

diamondThe Cullinan mine is one of the world’s most historically significant diamond sources. It is especially renowned as a source of large diamonds — most notably the 3,106-carat Cullinan stone discovered in 1905, which was cut into two diamonds and now form part of the crown jewels in the Tower of London.

Petra’s latest find — a D colour type II diamond — is expected to be sold in the second quarter of this financial year.

Earlier this year a 29.6 carat blue diamond was sold for $25.6m. In the year to 30 June 2014 Petra’s revenue increased 17% to $472.6m.

Petra has said it remains on track to reach annual production of circa 5m carats by the end of 2019. Based on production growth, diamond prices and expansion plans, the board may declare a maiden dividend from full year 2016.

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Mark Stones has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.