BlueRock Diamonds PLC (LON:BRD) saw grade and sales increases as it published results for the first quarter of 2018, while reiterating its guidance for the coming year.
The AIM-listed, South Africa-focused diamond miner said grades from its Kareevlei diamond mine were 3.8 carats per hundred tonnes (cpht) for the first quarter, up from 1.92 cpht for the same period last year.
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The amount of carats sold also shot up to 1,563 compared to 92 in the first quarter of 2017, representing 16.5% of the lower end of the company’s guidance for 2018 but in line with seasonal expectations.
BlueRock added that the average price per carat of US$378, up from US$362 in 2017, reinforced its position as one of the top ten highest value per carat diamond mines in the world.
In its production plans, the company said it would begin mining its K1 site in the second half of April 2018, while bulk sampling continued at its K5 site.
With K1 having an inferred grade of 6.3 cpht, the company hopes the new site will boost grades alongside its currently mined K2 site which has an inferred grade of 4.5 cpht.
The group added that its emphasis remained on maximising the value of Kareevlei and that it had decided not to pursue the Jubilee project in light of initial test results which suggested a low-grade mine.
Adam Waugh, chief executive of BlueRock, commented: "Q1 2018 has continued the significant progress that was made in 2017. We remain on track to achieve the parameters set out in our guidance announced in March 2018 and reiterated here.
He added: “We are excited to start mining K1 and expect that this will have a beneficial effect on our average grades over time and hence our overall profitability."
BlueRock shares were steady in early trading Monday at 1.5p.