BlueRock Diamonds' new management delivers record quarterly performance

Aim-listed BlueRock Diamonds, which owns and operates the Kareevlei diamond mine in the Kimberley region of South Africa, achieved record production of 3 516 ct in the second quarter, four times the 875 ct produced in the second quarter of last year.

“I am very pleased with the impact that our new CEO at Kareevlei and his team have made,” BlueRock executive chairperson Mike Houston commented in a statement on Monday.

Since the new management team started in April, operational performance at Kareevlei had been transformed, the company noted, adding that volumes were nearly double the average monthly rates achieved in 2018, leading to an increase in the number of carats produced.

Smarter mining and the lower dilution also contributed to an improved grade, while the higher volumes resulted in an increase in the incidence of larger and higher-grade diamonds being recovered.

The company processed a record 78 759 t during the second quarter, up 130% on the 32 247 t processed in the second quarter of 2018.

The mine also achieved a record grade of 4.46 carats per hundred tonnes.

BlueRock achieved an average price of $430/ct on sales of 2 517 ct. This was compared with the 875 ct sold at $305/ct in the prior comparable period.

Tender revenue increased to $1.08-million, compared with the prior comparable period’s $267 000.

“While the management team is conscious that there are a number of milestones to reach if we are to bring real value to our shareholders, the improved grade and price per carat achieved in the first half is a strong indication of the potential of the Kareevlei resource,” noted Houston.

“The immediate impact of the new team gives us confidence in our ability to take production to the next level. Once we have achieved our key objective of operating the company profitably, which we expect to happen in the second half of this year, we will explore how to increase production volumes further to the optimum level which the resource can comfortably sustain.”

Given this, Houston indicated that BlueRock remained on track to meet its guidance targets for 2019 and 2020.