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BlueRock Diamonds works to get back to pre-pandemic production levels

Snapshot

  • August grades well above the firm's internal target
  • Operations have resumed
  • New agreement to sell diamonds in Antwerp rather than locally
BlueRock

Quick facts: Bluerock Diamonds PLC

Price: 47.5 GBX

AIM:BRD
Market: AIM
Market Cap: £4.32 m
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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.

 

How it is doing

Third quarter production hit new records in terms of tonnes sorted and carats produced. Total carats produced in the third quarter amounted to 5,577. 

The company also acheived record grades at Kareevlei of 4.51 carats per hundred tonnes. 

BlueRock announced in September the discovery of a 9.7 carat diamond with an initial independent valuation estimate of $75,000. 

In July the AIM-listed firm raised £1.25mln to fast track growth plans and strengthen its balance sheet.

 

What the boss says: Mike Houston, executive chairman

“I am pleased to report a record quarter for three of our main KPIs: production, carats produced and grade. Volumes have been strong even though we are still using our old plant; this bodes well for the future. The increase in grade to 4.51 cpht is particularly pleasing as it follows a period of low grade whilst we concentrated on creating the Main Pit; we are confident that we will be able to meet or exceed our long term guidance of between 4.0 cpht and 4.6 cpht. We estimate that the average price per carat is approximately 10% down on the comparative period in 2019 excluding higher value stones. The price per carat in Q3 2019 reflected the sale of four high value stones, which sold for a total of USD450,000 and in Q3 2020 we sold only one higher value stone, which was valued at USD104,000. “I am also pleased to report that the expansion project is well under way and we fully expect the new plant to be commissioned by the end of the year as planned. I look forward to updating the market as we progress.”

 

 

 

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