What BlueRock Diamonds does
BlueRock Diamonds PLC (LON:BRD) operates the Kareevlei diamond mine in South Africa, one of the top 10 highest value per carat diamond mines in the world.
The Kareevlei licence area covers 3,000 hectares and hosts five known diamondiferous kimberlite pipes.
How it is doing
BlueRock has restarted operations following the lifting of lockdown in South Africa.
Production averaged almost 2,000 tons per day between May 11 and June 3, a rate 65% higher on the average daily rate in the fourth quarter of 2019, which at the time was a record performance with 110,000 tons.
In early June it sold 2,400 carats at an average price of US$290 per carat, for a total of US$700,000.
The first quarter saw production soaring 76% to 2,503 carats of diamonds, for sales up 77% to 3,267 carats.
It also agreed a tie-up with Bonas-Couzyn, which will sell the firm’s diamonds through Antwerp rather than locally. Bonas is the world's longest established diamond brokerage and sold 6.1mln carats in 2019.
A financing deal with the Delgatto Diamond Finance Fund (DDFF) will help bridge the gap between mining and sale of the rough stones.
The outline agreement will see DDFF finance each monthly parcel at 70% of an agreed valuation at a cost of 1.25% per month. BlueRock then has a 12-month option to repurchase the stones at the discounted price and re-sell at market rates.
What the boss says: Mike Houston, executive chairman
"We now anticipate that the first sale of Kareevlei diamonds in Antwerp will be in September with June to August production pre-financed monthly at 70% of value by Delgatto Diamond Finance Fund LP in accordance with our non-binding letter of intent."