BlueRock records strong second-quarter results

9th July 2021 By: Tasneem Bulbulia - Senior Contributing Editor Online

Aim-listed BlueRock, which owns and operates the Kareevlei diamond mine in the Kimberley region of South Africa, processed 134 510 t for the second quarter, a 48% increase year-on-year.

The company produced 5 442 ct for the period, and sold 5 106 ct, an increase of 117% and 112% year-on-year, respectively.

The average price for the period was $427.8/ct, a 48% increase year-on-year.

“It is difficult to compare production and sales numbers versus 2020 where Covid-19 impacted materially on the operations and the market. However, the second-quarter figures are very pleasing with the tonnes processed a record and achieved while the operation is transitioning to the new plant.

“Furthermore, the grade has been consistent and the average size and quality of diamonds excellent, as reflected in the sales price achieved,” BlueRock executive chairperson Mike Houston says.

He notes that the company continues to develop the main pit in preparation for the projected higher tonnages in the second half of the year once it has commissioned the new plant.  

“The market has remained firm throughout the quarter, with a strong buyer presence at the local tenders and a robust demand for the Kareevlei product. The overall market outlook is positive, with a tightness on the rough diamond supply side and a growing retail sector as global economies continue to open up.

“The Covid situation in South Africa has deteriorated recently, but with established mine protocols in place, it has not to date impacted on the operations or the planned completion of the expansion project. Management continues to monitor the situation closely,” Houston adds.