Proactive Investors - Run By Investors For Investors

BlueRock Diamonds turning out higher diamond grades from Kareevlei mine

AIM-listed miner said moving its mining focus to a new area in the second half of the year saw more consistent and higher grades, which has continued into 2019
Recently BlueRock solid its largest diamond to date for $190,000

South Africa's BlueRock Diamonds PLC (LON:BRD) sold 71% more carats from its Kareevlei mine last year as the opening up of a new section led to a strong improvement in average grades.

Just over 5,800 carats were sold in 2018, with 189,990 tonnes processed from total tonnage of 572,664 tonnes mined from the Kimberley-based kimberlite.

WATCH: BlueRock Diamonds chairman sets out strategy for increased production 

The average grade increased 34% to 3.28 carats per hundred tons (cpht), up from 2.45 cpht last time, with the average stone size recovered during 2018 around 0.35 carats in size and more than 90% of diamonds of gem or near gem quality.

As the AIM-listed company moved its mining focus from the KV2 area of Kareevlei to KV1, the second half of the year saw a more consistent and higher grade, which BlueRock said has continued into 2019.

Revenue increased to £1.4mln from £0.95mln, with a loss before tax of £2.4mln as operations continue to move towards the economies of scale required to become profitable, as well as a swing to a £0.6mln foreign exchange loss versus a gain the prior year.

Also in 2019, the company began 365-day operations in March, leading to a +30% increase in operating time, and has strengthened its management team for the mine.

READ: BlueRock Diamonds sells its largest discovered diamond for US$190,000

Two stones were recovered and sold during the first quarter of 2019, as well as a 24.98 carat diamond in June, the largest diamond to date, which sold for $190,000

A recent £982,000 fundraise to support expansion plans for the Kareevlei mine is expected to lead to the business being self-funding in the future.

View full BRD profile View Profile

Bluerock Diamonds Plc Timeline

Related Articles

July 08 2019
“We have a comprehensive development plan to increase production and I look forward to providing further updates as we progress,” executive chairman Mike Houston said.
July 24 2018
If it does decide to list in London, Fura will fill the coloured gemstone gap left by the departure of Gemfields
March 18 2019
Dunnedin Ventures is building up a copper exploration portfolio

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use