BlueRock Set to More Than Double Production

RAPAPORT… BlueRock Diamonds expects output to more than double in 2021 amid the expansion of its Kareevlei mine in South Africa, it said Tuesday.

The company plans to produce between 34,000 and 46,000 carats next year, compared with 13,800 to 18,000 this year. Prior to the coronavirus pandemic, the miner had forecast total output of only 16,000 carats to 21,500 carats for 2020. The guidance for 2021 is subject to change if there is a resurgence of Covid-19 cases and the mine shuts again.

BlueRock has also lowered the expected value for its rough, believing it will fetch $330 per carat, as opposed to the $420 per carat it achieved pre-pandemic.

“The conservative value per carat assumes that the market will remain under pressure through much of 2021,” the miner noted.

The company’s loss widened to GBP 2.7 million ($3.5 million) for the six months ending June 30, compared with a loss of GBP 381,027 ($488,502) a year ago. While much of the loss was a result of the 50-day closure during the pandemic, it was also due to expenses related to the mine’s expansion, as well as heavy rainfall during the first three months of the year, which prevented the mining of higher-grade ore, BlueRock stated. Revenue fell 5% to GBP 1.3 million ($1.7 million) for the period. 

Image: Rough diamonds. (BlueRock Diamonds)