Aim-listed BlueRock Diamonds reports that it had achieved a lot for the six months ended June 30 despite the pandemic, noting that it is now well positioned to expand its operations as planned and to operate profitably again from the second half of the year.
The company undertook a rapid response to the Covid-19 pandemic, with positive outcomes achieved at its Kareevlei mine, in South Africa.
It reopened the mine as soon as was permitted in South Africa, after only 50 days of care and maintenance measures, the company highlights.
BlueRock continued its expansion plans at Kareevlei, combining KV1 and KV2 to mine more efficiently, and increasing the plant size by 20% to handle one-million tonnes a year and advanced work to upgrade the resource.
The company also strengthened its balance sheet with two oversubscribed placings during and post period end to substantially increase yearly production.
BlueRock also established a relationship with Bonas Group in Antwerp to sell Kareevlei diamonds on a “mine to market basis” at potentially stronger pricing over the long term.
The company also formed a partnership with Delgatto Diamond Finance to finance sales and increase flexibility on timings of diamond sales.
BlueRock says the quality of diamonds enables it to sell into niche markets – the company sold two parcels of diamonds for $700 000 and $1.26-million, respectively, during and post the period end.
The company anticipates increasing incidence of higher-value diamonds – post period end, it sold one diamond for $104 000 and recovered a second which is valued at an estimated $75 000.