BlueRock increases Kareevlei yearly run rate to 400 000 t

22nd June 2020 By: Simone Liedtke - Writer

Aim-listed diamond producer BlueRock Diamonds achieved its target to reach a yearly run rate of 400 000 t and operational profitability through enhanced production at the end of 2019.

In a statement on June 22, the producer, which owns and operates the Kareevlei diamond mine in South Africa, announced its audited results for the year ended December 31, 2019.

During the year, BlueRock's sales increased by 124% to 12 675 ct, up from the 5 657 ct sold in 2018.

Production volumes were up by 70% to 323 000 t, with average grade up 32% to 4.34 carats per hundred tonnes.

The average price per carat went up by 24% to $415, and revenue was £4.1-million, an increase of 190% on the year before.

The producer continues to work well with its new strategic partner, the Teichmann Group (which holds a 29% interest in the company), and continues working towards achieving its advanced strategy to take the mine to a mid-sized mine positioned for a material increase in production.

Post-period end, the mine is back to full production following the national lockdown to halt the spread of Covid-19, which subsequently saw BlueRock identifying a new route to market with pre-sale financing that enables the company to have greater flexibility over when sales are made.

BlueRock also completed a private sale of a parcel of diamonds in June at an average price of $290/ct, which the company says, “reflects ongoing demand for Kareevlei diamonds”.

The producer also reaffirmed its commitment to providing both the community and the employees with a 5% interest in the local company in accordance with the South African Mining Charter.

Further, the BlueRock annual general meeting will be held on July 14 in London, and taking the pandemic into account, the company has requested shareholders to vote on resolutions by proxy.