logo-loader
viewBluerock Diamonds Plc

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

Snapshot

  • Revenues and production soared in the first quarter
  • Operations have resumed
  • New agreement to sell diamonds in Antwerp rather than locally
BlueRock

Quick facts: Bluerock Diamonds Plc

Price: 40 GBX

AIM:BRD
Market: AIM
Market Cap: £3.63 m
Follow

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 has restarted operations following the lifting of lockdown in South Africa.

Production averaged almost 2,000 tons per day between May 11 and June 3, a rate 65% higher on the average daily rate in the fourth quarter of 2019, which at the time was a record performance with 110,000 tons.

In early June it sold 2,400 carats at an average price of US$290 per carat, for a total of US$700,000.

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

It also agreed a tie-up with Bonas-Couzyn, which will sell the firm’s diamonds through Antwerp rather than locally. Bonas is the world's longest established diamond brokerage and sold 6.1mln carats in 2019. 

A financing deal with the Delgatto Diamond Finance Fund (DDFF) will help bridge the gap between mining and sale of the rough stones.

The outline agreement will see DDFF finance each monthly parcel at 70% of an agreed valuation at a cost of 1.25% per month. BlueRock then has a 12-month option to repurchase the stones at the discounted price and re-sell at market rates.

 

What the boss says: Mike Houston, executive chairman

"We now anticipate that the first sale of Kareevlei diamonds in Antwerp will be in September with June to August production pre-financed monthly at 70% of value by Delgatto Diamond Finance Fund LP in accordance with our non-binding letter of intent."

 

Video

 

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Bluerock Diamonds Plc named herein, including the promotion by the Company of Bluerock Diamonds Plc in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

BlueRock Diamonds PLC operating well and keen to expand production says FD...

BlueRock Diamond PLCs’ (LON:BRD) finance director, David Facey, says the junior was operating profitably at the year-end even after losing a month installing a new crusher at the Kareevlei mine. Combining the two pits at the South Africa-based operation will also be hugely more efficient, he...

on 26/6/20

2 min read