Industry News by Nemesis

BlueRock Loss Narrows as Sales Rise

September 4, 2019

 

BlueRock Diamonds improved its bottom line in the first half, as sales grew amid increased production and a higher average price, the miner said Monday. 

The company reported a loss of GBP 381,027 ($458,064) from its Kareevlei mine in South Africa for the six months ending June 30, compared with a loss of GBP 1.3 million ($1.6 million) the previous year. 

Rough sales more than doubled year on year to $1.8 million for the period. That figure included $190,000 for a 24.9-carat stone the miner sold in June. At an average price of $7,631 per carat, the sale set a record for the company. Sales volume jumped 80% to 4,365 carats, with the average price climbing 19% to $405 per carat. Production was 4,936 carats, up from 2,438 carats the previous year. 

Production levels in May and June were twice as high as those for the same period a year ago, after the company appointed a new management team in April, and changed its operation. BlueRock appointed Gus Simbaganevi CEO of Kareevlei, and took on Teichmann Group as a strategic investor in the company. 

The miner expects to achieve profitability in the second half after implemeting new initiatives to improve results. It plans to create stockpiles of run-of-mine rough and crushed ore to offset the impact of the rainy season, during which operations are difficult.

Image: A rough diamond from Kareevlei. (BlueRock Diamonds)

 

Source: Rapaport

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