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BlueRock Diamonds set to double production after funding round

Snapshot

  • New mining plan being implemented 
  • Plan to double production this year
  • BlueRock sells largest diamond to date for US$190,000
BlueRock

Quick facts: Bluerock Diamonds Plc

Price: 59 GBX

AIM:BRD
Market: AIM
Market Cap: £3.1 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's doing

BlueRock booked revenue of £4.1mln for the 2019 full year, up by 190%.

During the second half of 2019, the company also turned a profit for the first time.

The success was based on the sale of 12,675 carats from the Kareevlei mine in South Africa, up 118% on the previous year.

Grades and price per carat also improved.

The company also said it expects to report positive EBITDA and positive comprehensive income for the second half of 2019, excluding non-cash adjustments for IFRS 9 charges and movement in foreign exchange. 

In February, the miner raised £1.9mln in an oversubscribed placing and subscription to fast track a doubling of production at Kareevlei.

What the boss says, Mike Houston

"I am very pleased with the continued success at Kareevlei, having achieved the aggressive guidance for 2019 and operated profitably for the first time in the second half of 2019,” said BlueRock executive chairman, Mike Houston.

“We are proud of this key milestone, which is a testament to the implementation of the revised production strategy brought in by the company's new management team in the second quarter of 2019."

Inflexion points

  • Improved grades and price per carat indicate the potential of the Kareevlei resource. 
  • Money from placing will enable production volumes to double from 323,000 tonnes in 2019 to a run rate of +/- 750,000 tonnes per annum
  • This should lead to an increase in carats to over 30,000 by the end of 2020

 

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BlueRock Diamonds' Mike Houston on £1.9mln raise and plans to double production

BlueRock Diamonds PLC's (LON:BRD) Mike Houston caught up with Proactive London's Andrew Scott soon after announcing they've raised £1.9mln to fast track a doubling of production at its Kareevlei mine in South Africa. Houston says the additional funds will also help reduce unit costs...

on 27/2/20

2 min read