logo-loader
Bluerock Diamonds Plc

BlueRock Diamonds eyes move into profit as volumes pick up

Snapshot

  • Record production and grades in Q3
  • New mining plan being implemented 
  • One-for-500 consolidation planned
  • BlueRock sells largest diamond to date for US$190,000
BlueRock

Quick facts: Bluerock Diamonds Plc

Price: 115.5 GBX

Market: AIM
Market Cap: £3.76 m
Follow

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 its doing

Grades and production from the Kareevlei diamond mine in South Africa hit a record in the third quarter of 2019.

92,500 tonnes of ore were mined in three months until September, which lifted production up 45% on the same period last year.

Carats also shot up 117% to 3,973, with each stone’s average grade increasing by a third to 4.3 carats.

The gem company has so far discovered two stones weighing over 20 carats, with the latest in September tipping the scales at 20.72 carats.

 

What the boss says

“The recovery of the largest diamond to date was an ‘exciting milestone’ and underpins why the company is confident about the potential of the Kareevlei mine," Mike Houston, executive chairman.

“We have a comprehensive development plan to increase production.”

 

Watch the interview

 

Inflexion points

Mike Houston, who took over as executive chairman in May, said the improved grade and price per carat achieved were a strong indication of the potential of the Kareevlei resource. 

He expects the miner to move into profit in the second half of the year with the focus thereafter how to increase production to the optimum level.

“Volumes are running at almost double the average monthly rates for 2018, leading to a consequent increase in the number of carats produced.

Houston said that “record levels of income and lowered unit costs of production” were achieved in September thanks to “consistently high values per carat” of diamonds produced in the last quarter.

At 111p, the junior is valued at £3.7mln.

 

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Bluerock Diamonds Plc named herein, including the promotion by the Company of Bluerock Diamonds Plc in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Investor Update: BlueRock Diamonds makes record sale for one of its stones

Headlines from the Proactive UK newsroom. BlueRock Diamonds (LON:BRD) has sold a 20.72 carat diamond unearthed in September for US$236,000. It is the highest value achieved to date for a single stone form the Kareevlei mine.  Rockfire Resources (LON:ROCK) has hit a large sulphide zone...

2 weeks, 6 days ago

2 min read