BlueRock recovers largest diamond to date
Production and sales rise in first quarter
New mining plan being implemented
What BlueRock Diamonds does:
BlueRock Diamonds PLC (LON:BRD) operates the Kareevlei diamond mine in South Africa, one of the top 10 highest value per carat diamond mines in the world.
The Kareevlei licence area covers 3,000 hectares and hosts five known diamondiferous kimberlite pipes.
- BlueRock has recovered its largest diamond to date – a 24.98 carat gem quality stone. The diamond will soon be put to tender. The largest diamond prior to this was 16.28 carats, which wold for US$78,947.
- The company recently raised £982,000 through an equity sale to support expansion plans for the Kareevlei mine. Following the equity raise, the group expects the business will be self-funding in the future.
- A new mining plan at Kareevlei is being implemented, targeting an increase in production and improved cash flow generation.
- Management changes have been made to facilitate the new mining plan. Mike Houston has been appointed as executive chairman and Gus Simbanegavi has been hired as chief executive of the Kareevlei Mining subsidiary ahead of an anticipated promotion to group chief executive once production goals are achieved.
- In the first quarter, the mine produced 42,409 tonnes of ore, up 12% on last year. BlueRock sold 1,847 carats in the period, a year-on-year increase of 18%, and grades improved by 4% to 3.41 carats per hundred tonnes (cpht).
What the chairman says:
Executive chairman, Mike Houston, said the recovery of the largest diamond to date was an “exciting milestone” and underpins why the company is confident about the potential of the Kareevlei mine.
“We have a comprehensive development plan to increase production and I look forward to providing further updates as we progress,” he said.
Houston said the optimisation of the mine plan and right sizing the cost structure were key objectives for management in the short term.
He said the recent £982,000 capital raise will allow management to make further improvements and de-risk the business.