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BlueRock Diamonds ready to restart operations after lockdown following soaring quarterly results

Snapshot

  • Revenues and production soared in the first quarter
  • Now halting operations following governmental guidelines to prevent the spread of coronavirus 
  • BlueRock sells largest diamond to date for US$190,000
BlueRock

Quick facts: Bluerock Diamonds Plc

Price: 42.8469 GBX

AIM:BRD
Market: AIM
Market Cap: £2.25 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

BlueRock suspended operations on the order of the South African government and will remain on care and maintenance until the market recovers sufficiently for them to become cash-flow positive on a monthly basis.

The diamond market has been impacted by the coronavirus pandemic, with international tender houses and supporting operations suspended until further notice.

The first quarter saw production soaring 76% to 2,503 carats of diamonds, for sales up 77% to 3,267 carats.

 

What the boss says: Mike Houston, executive chairman

"This update is overshadowed by the impact of the coronavirus pandemic that has been sweeping the world and, as announced on 24th March 2020, has resulted in the temporary closure of Kareevlei."   

"This is an evolving situation but our key priority at this early stage is the safety and wellbeing of our employees and their families and the protection of the assets."

"Before we were faced with the pandemic, BlueRock was performing well, with the results for Q1 significantly better than the previous year, despite having over 18 inches (Q1 2019: 5.9 inches) of rainfall and the loss of eight days production due to the South African lockdown." 

 

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BlueRock Diamonds: 'Creative deal-making' sees it back in production and...

Mining Capital's Alastair Ford caught up with Proactive London's Andrew Scott after speaking to the team at BlueRock Diamonds (LON:BRD). He says they've restarted production at the Kareevlei operation in South Africa and has also negotiated a finance facility that will support sales of...

6 days ago

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