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BlueRock Diamonds confirms Teichmann as new contract miner for Kareevlei

Mining costs are expected to fall significantly over the next 12 months

Bluerock Diamonds Plc -
Diamonds from Kareevlei

BlueRock Diamonds PLC (LON:BRD) has signed a contract with South Africa’s Teichmann Group to mine the ore at its Kareelvlei mine near Kimberley.

Teichmann is a pan African civil engineering and mining group with over 1,800 employees.

Teichmann's extensive experience in mining operations is expected to significantly de-risk BlueRock's mining activities and allow it to meet its production targets in a cost-effective manner.    

Unlike the agreement with the previous provider of these services, which was paid on an hourly basis with a minimum number of hours guaranteed, Teichmann will be paid almost entirely on a cost per tonne basis.

Accordingly, the effective cost per tonne is reduced with the planned increased production.  Based on the lower end of BlueRock's current production expectations, the estimated cost of Teichmann's services for the 12 months ended 30 June 2020 will be approximately ZAR 21 million (approximately £1.179mln). 

Teichmann owns approximately 19% of BlueRock, following a fundraising round in May.

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Price: 106 GBX

AIM:BRD
Market: AIM
Market Cap: £3.45 m
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