Blue diamond haul gives uncommon excellent news for struggling miner

Struggling gem producer Petra Diamonds discovered 5 blue stones, usually among the many Most worthy on the earth, at its flagship mine in South Africa.

Whereas the invention will likely be a lift for the corporate that’s put itself up on the market after being dragged down by large money owed and a collapse within the diamond market, Petra cautioned that it alone gained’t be sufficient to show round its fortunes.

Petra stated it discovered 5 Kind IIb blue diamonds of excessive shade and readability at its Cullinan mine, ranging in measurement from 9.6 carats to 25.eight carats. It didn’t point out their potential worth and stated it’s taking a look at one of the best ways to promote them. Blue stones are among the many rarest and Most worthy and may fetch report costs. Final yr, Petra offered a 20-carat blue gem for nearly $15 million.

“These finds, while a optimistic growth, is not going to have a fabric influence on the doubtless phrases of the required long-term resolution to enhance the group’s capital construction, nor the numerous degree of fairness dilution that present shareholders are prone to expertise in reference to its implementation,” Petra stated Wednesday.

The shares have been little modified by 11:30 a.m. in London, paring an earlier advance of as a lot as 13%. The inventory is down 76% this yr.

In June, Petra stated it was in search of gives for the entire firm, components of the enterprise or any of its belongings because it seeks to pay down money owed. The corporate can be speaking with lenders and bondholders to attempt to enhance its debt state of affairs.

Petra, which has mines in South Africa and one in Tanzania, was already going through a number of issues with a mountain of debt and falling diamond costs earlier than the Covid-19 pandemic shut down the worldwide commerce in gems. The corporate has slid from a peak worth of greater than $1.5 billion because it redeveloped the Cullinan mine, the place the world’s largest diamond was present in 1905.

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