The champagne was flowing at Waikato's Rich Hill Stud in New Zealand with a Group One celebration to toast their major role in a history-making Melbourne Cup result.

Their giant-killing farm graduate Prince Of Penzance repelled the international challenge with rider Michelle Payne becoming the first woman to win the Flemington feature.

Rich Hill principal John Thompson said it was a dream result for the stud and his family, his staff, clients and supporters.

"The place just went berserk, it's a huge thrill and not only for us but also for the New Zealand thoroughbred industry."

The 13th individual Group One winner for Rich Hill's foundation stallion Pentire, Prince Of Penzance was bred by the farm with Katsumi Yoshida of Northern Farm, Japan.

"We established a breeding partnership with them when we got Jungle Pocket here," Thompson said.

"I went to Japan to look at a number of mares that came back to Rich Hill.

"When Jungle Pocket couldn't come back here because of the EI (equine influenza) outbreak, I suggested to Mr Yoshida that Royal Successor should go to Pentire and he agreed."

The resulting foal was Prince of Penzance, who was subsequently put through Rich Hill's 2011 Premier Sale draft at Karaka and he was knocked down to the $50,000 bid of the respected Queensland bloodstock agent John Foote.

"He's out of a Mr Prospector mare, Royal Successor, and we'll be selling a brother to Prince Of Penzance at Karaka next year, so we couldn't possibly have wished for a better result," Thompson said.

While the Darren Weir-trained Prince Of Penzance was at long odds in the Cup, there was a degree of pre-race confidence at Rich Hill.

"He was ridden a bit upside down when he led in the Moonee Valley Cup and still ran second in a track record time. He didn't deserve to be at such a big price."