RNS Number : 1866I
BlueRock Diamonds PLC
13 April 2022
 

BlueRock Diamonds PLC / AIM: BRD / Sector: Natural Resources

13 April 2022

BlueRock Diamonds PLC ('BlueRock' or the 'Company')

Q1 2022 Production Update

 

BlueRock Diamonds PLC, the AIM listed diamond producer, which owns and operates the Kareevlei Diamond Mine ('Kareevlei') in the Kimberley region of South Africa, is pleased to announce its Q1 2022 production update.

 

Overview

 


Q1 2022

Q1 2021

% Variation

Tonnes Produced

115,356

86,005

34%

Grade cpht

4.02

4.08

-1.5%

Carats produced

4,643

3,507

32%

Carats sold

5,887

4,004

47%

Avg. price per carat USD

686

446

54%

 

BlueRock Executive Chairman, Mike Houston, said, "The Q1 2022 production figures are encouraging as they were achieved in a period that once again saw extremely wet weather conditions that have persisted into April.  As mentioned in our announcement dated 31 March 2022, we are concentrating on mine development to ensure a consistent supply of ore, which requires a significant increase in waste mining in the short and medium term.    Although mined tonnes achieved are significantly higher than the comparable period in 2021, the rain has delayed progress in this area impacting on quality ore supply in April. Management has thus taken steps to make further improvements to the processing operation, which will unquestionably help in ramping up production as we move into the drier weather conditions.

 

"The market for Kareevlei diamonds has remained extremely positive throughout the quarter, with carats sold up 47% and prices at an exceptional average of $686 per carat driving strong revenue flows.  The outlook remains firm with the supply side, which was already tight prior to the current situation in Ukraine, further tightened with the uncertainty of supply of quality rough diamonds. Notably, we continue to recover some excellent stones with nine high value diamonds recovered/sold in Q1 2022.

 

"Looking ahead, with a stronger balance sheet having recently completed a £2.1m placing before expenses, and a fair wind with regards to the diamond market, BlueRock is well positioned to achieve a significant step-change in its production/financial profile."

 

Large stones recovered in 2022

 

Date sold 2022

Carats

Value

USD000

Value per carat USD000

March

19.3

116

6


12.7

128

10


8.7

104

12


6.6

63

9.5

February

11.9

211

17.6


8.3

96

8.3


13.6

78

5.8


7.5

75

10

January

6.8

63

9.3

Note: It is Company policy to announce all stones sold with a value of in excess of USD50k.

 

Outlook

 

The Company's guidance for 2022 and 2023 remains unchanged and is as follows:


 Actual: 2021

Outlook: 2022

Outlook: 2023

 Tonnes processed ('000)

516

900-950

1,000

 Carats produced

23,497

36,000-43,000

43,000

 Grade

4.55

4.0 to 4.5

4.3

 Value Per Carat (USD)

470

450

 450

Revenue (USDm)

10.8

16 to 19

19

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

 

**ENDS**

 

For further information, please visit BRD's website www.bluerockdiamonds.co.uk or contact:

 

BlueRock Diamonds PLC

Mike Houston

David Facey, FD

 

m.houston@bluerockdiamonds.co.uk

dfacey@bluerockdiamonds.co.uk

SP Angel (NOMAD and Broker)

Stuart Gledhill / Caroline Rowe

 

Tel: +44 (0)20 3470 0470

St Brides Partners Ltd (Financial PR)

Isabel de Salis / Oonagh Reidy

 

bluerock@stbridespartners.co.uk

 

Notes to editors:

BlueRock Diamonds is an AIM-listed diamond producer which operates the Kareevlei Diamond Mine near Kimberley in South Africa which produces diamonds of exceptional quality and ranks in the top ten in the world in terms of average value per carat. The Kareevlei licence area covers 3,000 hectares and hosts five known diamondiferous kimberlite pipes with a combined inferred resource of 10.4 million tonnes / 516,200 carats (February 2021); based on its planned production of 1 million tonnes per annum, this provides a minimum 10-year life of mine. 

 

 

 

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