BlueRock Diamonds PLC lost £538,000 on turnover of £2.8mln in the six months to June 2021, a significant narrowing of the £1.5mln loss returned for the comparable period in 2020.
The reduction in the operating loss was due to the increased revenue arising from significantly higher pricing of diamonds produced from the Karevleei mine in South Africa, improved grade, and increased production volumes, although it should be noted that 2020 was also impacted by the closure of the mine due to the coronavirus.
Unrestricted cash and near cash as at 30 June 2021 was £609,000, including £558,000 due to be paid for diamonds sold in the June tender for which funds were not received until early July 2021.
In addition, as at 30 June 2021, amounts outstanding from the Teichmann Group and connected parties was £199,000 in accordance with the terms of the equity subscription in February 2021.
A further £1.47mln was, subject to completion of formal documentation, due to be received in 11 equal monthly instalments.
In May 2021, the company entered into Heads of Terms with Teichmann to invest a further £1.61mln through a loan which, subject to Takeover Panel and shareholder approval, will become a convertible loan note.
This funding provided the company with the capital to deliver the expansion project while providing the working capital to develop mining operations.
During the period, tonnes processed at Karevleei increased by 34%, grades increased by 33%, and the mineral resource was also boosted.