BlueRock's Average Price Skyrockets

RAPAPORT... BlueRock Diamonds' average price jumped sharply at its March rough tender - a trend the miner put down at least in part to the Russia crisis.The company garnered $1,000 per carat at the sale, up from a 2021 average of approximately $465 per carat, it said Tuesday. The figure was also higher than the $600 per carat it brought in during the strong period of demand in January and February, according to the company, which operates the Kareevlei mine in South Africa."The market is obviously being influenced by the current geopolitical situation, and this is partially reflected in our latest average tender price," said BlueRock executive chairman Mike Houston. "However, the overall supply side of rough diamonds has been tight for some time and is very likely to remain so for the foreseeable future."The tender included four high-value rough diamonds ranging in size from 6.6 to 19.3 carats, the UK-headquartered company added.Sanctions on Russian entities since the start of the Ukraine war have raised questions about the availability of rough, as Alrosa is the world's largest producer by volume. However, despite the situation, BlueRock does not intend to raise its price guidance for the year from the current forecast of $450 per carat, management said last week in an operational update.The company expects production for the full year to rise by 53% to 83% to between 36,000 and 43,000 carats. Revenue will grow by 48% to 76% for a total of $16 million to $19 million, it predicted.Image: Rough diamonds from the Kareevlei mine. (BlueRock Diamonds)