BlueRock Diamonds PLC (LON:BRD) shares jumped in early trading Thursday after reporting a narrowed loss for the first half of the year as average grades and production increased at its Kareevlei mine in South Africa.
The AIM-listed miner reported a narrowed loss of £789,000 for the period compared to a £1.3mln loss the year before. Meanwhile, revenue rose 269% to £556,000, with a production increase of 81% year-on-year to 73,028 tonnes.
READ: BlueRock Diamonds begins kimberlite processing from KV1 Pipe at Kareevlei mine
BlueRock also said average grades had continued to rise, with the average grade for the period reported at 3.17 carats per hundred tonnes (cpht) compared to 2.26 cpht in the first half of 2017.
The average value per carat remained steady during the period at US$340 compared to US$362 in 2017.
Paul Beck, chairman of BlueRock, said the increased production volumes had been achieved despite a seasonal downturn during the period, as well as a previous fault with a crusher that had temporarily halted production in June.
Post-period end, Beck said all issues with the crushing circuit had been resolved and the mine was operating around a 50% increase in throughput, with the average processed per day approaching 1,500 tonnes.
The firm also said the level 1 kimberlite currently being processed from its KV1 pipe, which began earlier this month, should yield an average grade of between 50% and 60% of the inferred grade of 6.3 cpht.
In its outlook, Beck said daily production figures following the reconfiguration of the crushing circuit were now “consistently” at target levels, adding that development work at its KV2 pipe would provide “good quality grade kimberlite” in 2019.
Shares were up 2.7% at 0.92p.