Petra Diamonds sells rare pink stone for $10m

The rare 23.16 carat diamond was recovered in November from the Williamson mine in Tanzania and was described at the time as a diamond of “exceptional colour and clarity”.

It was sold into a partnership, with Petra receiving $10.05m for the rough stone ($433,938 per carat), as well as retaining a 20% interest in the sales proceeds of the polished product.

It was bought by Golden Yellow Diamonds on behalf of diamond manufacturer and large and unique coloured diamond specialist M.A. Anavi Diamond Group.

Petra Diamonds’ chief executive Johan Dippenaar said the result affirms that the market for high quality coloured diamonds is robust.

“Pinks of this size and quality are incredibly rare, but the Williamson mine is known to produce them from time to time.

“This bodes well for the future of the mine as we continue to ramp up production and optimise the processing plant.”

RBC Capital Markets noted that the price is well above the $2.3m to $3m it estimated.

“[It] highlights that the general market softness in white stones has not impacted on fancy coloured diamonds,” it said.

“While the liquidity impact is relatively small it will go some way to alleviate concerns in the market about cash flow for Petra in a soft market.”