BlueRock Diamonds, which owns and operates the Kareevlei Diamond Mine in the Kimberley region of South Africa, has reported that its production and revenue more than doubled during H1 2019 as compared to a year ago, mainly on account of the introduction of a new plan and management team in April this year.

The Company reported revenue of US$ 1,768,275 for the six-month period, which was more than double that of H1 2018 (US$ 821,812) on production of 4,936 carats, which too was over double that of H1 2018 (2,438 carats).

On other parameters too, this year’s H1 performance was way ahead of the previous year –120,426 tonnes of ore were processed, 65% higher than in H1 2018 (73,028 tonnes); the average grade of 4.10 Carats Per Hundred Tonnes  was above H1 2018 (3.34 cpht); and average price achieved was US$ 405/ct on sales of 4,365 carats as against 2,419 carats sold at US$340/ct in H1 2018.

To get a clearer picture of the impact of the new team, the Company said that the six-month performance could be viewed in two parts: prior to and post April 2019. In short, the results of May and June 2019, which achieved monthly levels of production at a rate of twice the average for 2018 and accounted for over 50% of the total, led to record levels of carats produced and, consequently, revenue being doubled, BlueRock said.

The upgrade to the crushing circuit, which was completed at the end of July 2019, is expected to have provided a further boost on all fronts. The Board also remains confident that the near-term monthly production target of 40,000 tonnes is achievable.

The Company also pointed out that Kareevlei continues to deliver excellent quality diamonds, particularly in the plus US$ 1,000 per carat range. There were three notable stones in the 6-month period to 30 June and the largest 24.9 carat stone marked a step change in size and a further reflection of the potential of the resource. Five diamonds sold at tender for more than US$ 50,000 during the year to date.

On the financial front, In the first half of 2019 the Company made a loss of £ 381,027 on turnover of £ 1,366,163, compared with a loss of £ 1,293,931 on turnover of £ 555,842 in the first half of 2018.

BlueRock said its outlook and guidance remains unchanged for 2019 with expected recovery of 12,0000 to 16,000 cts at an average price of US$ 340 / ct rising to 16,000 to 21,500 in 2020 at the same average price.