logo-loader
Deep diveMining
Bluerock Diamonds Plc

BlueRock Diamonds eyes move into profit as volumes pick up

Snapshot

“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.

BlueRock

Quick facts: Bluerock Diamonds Plc

Price: £0.56

Market: AIM
Market Cap: £1.81 m
Follow

 

  • Record production and grades in second quarter

  • New mining plan being implemented 

  • One-for-500 consolidation planned

  • BlueRock sells largest diamond to date for US$190,000

 

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 is doing

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

Some 3,516 carats were produced after the amount of tonnes processed rose 130% to 78,759 tonnes at a grade of 4.46 carats per tonne (cpht).

Average sale prices were US$430/c with one 24.9 carat stone sold for a record US$190,000 in June.

 

What the boss says: Mike Houston, executive chairman

“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.

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

 

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.

“Smarter mining and the consequent lower dilution has also led to an increase in the incidence of larger and higher grade stones.”

At 0.11p, the junior is valued at just £1.63mln

 

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

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

Capital Network analyst on MTI Wireless Edge's water management acquisition

Capital Network analyst Ed Stacey discusses MTI Wireless Edge Ltd's (LON:MWE) decision to buy a 50% stake in one of the main resellers of its Mottech Water Solution in Australia. The addition of Parkland Australia for up to AU$0.8mln is expected to enhance earnings and offer potential to...

on 06/27/2019

RNS

Update on Broker

1 week, 5 days ago

Teichmann Contract Signed

1 week, 5 days ago

Total Voting Rights

2 weeks, 4 days ago

Price Monitoring Extension

3 weeks, 3 days ago

Result of AGM

3 weeks, 3 days ago

Holding(s) in Company

3 weeks, 5 days ago

2 min read