Apr 10, 2018

BlueRock’s Grade and Price Per Carat Realised Improve in Q1 2018

BlueRock Diamonds plc, which owns and operates the Kareevlei Diamond Mine in the Kimberley region of South Africa in an update said it had attained an average revenue per carat of US$ 378 in Q1 2018, as compared to US$ 362 realised in  FY 2017. Revenue per tonne processed at US$ 14.36  was also higher than the US$ 8.88 achieved in FY 2017.

The Company said that the  average price per carat realised “reinforces the Company’s position as one of the top ten highest value per carat diamond mines in the world, reflecting the high quality of the Kareevlei stones and the high percentage recovery of gem stones”.

The Company attained a grade of 3.8 cpht as compared to 2.45 cpht in FY 2017. Total volume processed for the period was 38,781 tonnes as compared to 9,310 tonnes processed in  Q1 2017. This four-fold increase represents 14.1% of its production target for 2018, and is in line with its seasonal expectations, the Company asserted.

BlueRock announced that it had sold a total of 1,563 carats in Q1 2018 representing 16.5% of the lower end of the Company’s guidance for 2018. “This is consistent with seasonal expectations as Q1 production will always be hampered by the extended Christmas and New Year break coupled with the Northern Cape rainy season experienced in the first quarter of each year,” the Company explained.

“Quarter 1 represents the period from the end of the November tender to the end of the March tender,” the Company stated. “Whilst this is a derivative measure (reliant upon other factors) this remains a key indicator of Kareevlei’s profitability.”

BlueRock plans to start mining K1 in the second half of April 2018. “Initially, the top calcretised level will be removed and it is expected that the Company will be mining kimberlite in May for processing in June 2018,” the Company averred.

K1 has an inferred grade of 6.3 cpht compared to K2’s 4.5 cpht. “The Company expects that over time, this will lead to an increase in overall grade,” BlueRock said. “K2 will continue to be mined as K1 is developed and bulk sampling is continued on K5, giving the flexibility to ensure consistent supply of good quality kimberlite to the processing plant.”

BlueRock also announced that it will keep its focus on “maximising the value of Kareevlei” and hence, has decided not to pursue the Jubilee project.

 Adam Waugh, Chief Executive Officer of BlueRock Diamonds, commented: “Q1 2018 has continued the significant progress that was made in 2017. We remain on track to achieve the parameters set out in our guidance announced in March 2018 and reiterated here.”