BlueRock Sees Full-Year Sales Jump

RAPAPORT… Sales of rough at BlueRock Diamonds increased in 2020 as the miner increased production at its Kareevlei deposit in South Africa.

Sales volume rose 29% to 16,290 carats for the year, BlueRock said Tuesday. In addition, the miner sold goods in December 2020, but it did not hold a sale for the same month in 2019.

Meanwhile, the average price dropped 29% to $295 per carat. The miner produced lower-value ore while it prepared to expand the deposit’s main pit. The challenging market environment amid the pandemic also weighed on the average price, BlueRock said. Output at the site grew 10% to 15,371 carats for the full year.

Sales in the fourth quarter climbed 63% to 6,807 carats, while the average price for the three months ending December 31 slid 36% to $263 per carat.

“Given the problems of operating in the Covid-19 world, I am very encouraged by our [results],” said BlueRock executive chairman Mike Houston. “The fall in the value per carat is unfortunate, as it has reduced the impact of the improved production output, but we are now seeing signs of recovery in general pricing.”

BlueRock expects to recover between 34,000 and 46,000 carats in 2021, it added.

Image: Rough diamonds from the Kareevlei mine. (BlueRock Diamonds)