BlueRock Diamonds PLC (LON:BRD) has sold 2,400 carats from its Karevleei mine in South Africa at an average price of US$290 per carat for a total of US$700,000.
The transaction was conducted privately.
WATCH: BlueRock Diamonds chairman updates on sale of 2,400 carats from Karevleei mine
"This sale at a time when the traditional sales channels for diamonds remain closed and at a price which we estimate to be at current market value for that particular parcel of diamonds is an excellent result in a highly uncertain market,” said BlueRock executive chairman Mike Houston.
Houston added that the parcel sold did not contain any notable high value diamonds and therefore the price achieved was approximately 15% below what the company would have expected to achieve for this parcel prior to the coronavirus crisis.
"At a sale price of an average of US$290 per carat, which we hope represents the bottom of the market, the group is cash flow positive. Following receipt of the sale proceeds the group's cash balance will be around £1.1mln and there is a further £268,000 to be received in August 2020 from the Teichmann Group in accordance with the terms of the placing in February 2020," he said.
June to August production is likely to be pre-financed monthly at 70% of value by Delgatto Diamond Finance Fund LP in accordance with the non-binding letter of intent that was signed in May.