REG - BlueRock DiamondsPLC - Half-year Report
07/09/2022 07:00
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RNS Number : 5658Y BlueRock Diamonds PLC 07 September 2022
BlueRock Diamonds PLC / AIM: BRD / Sector: Natural Resources
7 September 2022
BlueRock Diamonds Plc ("Bluerock" or the "Company")
Interim Results
BlueRock Diamonds, the AIM listed diamond mining company, which owns and
operates the Kareevlei Diamond Mine ('Kareevlei') in the Kimberley region of
South Africa, is pleased to announce its interim results for the six months
ended 30 June 2022.
OVERVIEW - June 2022 versus June 2021
Operational Results
· 18% increase in tonnes processed to 260k
· 20% decrease in grade to 3.22 cpht
· 7% decrease in carats produced to 8,214
· 48% increase in sales price to US$629 per carat
Capital Projects
· Development to open up the Main Pit at depth continued with 1.1
million tonnes ('Mt') of waste mined, up 78% year-on-year ('yoy')
· Commissioned the new plant at the end of 2021 with a gradual build-up
of production volumes
· High-Level Review undertaken in June recommending changes to further
de-risk mining and plant in the wet season
Financials
· 45% increase in revenue to £4,079,000 (2021: £2,817,000) driven by
higher diamond prices
· Operating loss of £783,000 (2021: £539,000), a result of reduced
production and higher costs
· Loss before taxation was £23,000 (2021: £513,000)
CHAIRMAN'S STATEMENT
The key drivers for the first half of the year were to continue with the
increased mining development in the Main Pit (KV1 and KV2) and to ramp up
production in the expanded 1 million tonne per annum ('Mtpa') processing
plant, which had been largely commissioned in late 2021. Unfortunately, the
mine experienced extreme weather conditions for the first five months of the
year, the third year in a row that Kareevlei has had rainfall significantly
above the long-term average (+214%). Consequently, management is now
considering how to mitigate against what appears to be extreme changes in the
environment.
To complicate matters further, the wet season extended into May and June 2022
with rainfall of 106mm; in past years these have been dry months. As a
consequence, although the total development tonnes were materially up on 2021,
they were significantly down on target, which resulted in the operation having
limited tonnage of pure kimberlite and having to feed lower grade and
difficult to handle material throughout the period under review.
The market remained robust with a major spike in the prices in Q1, due mainly
to the concerns on the rough diamond supply side driven by the war in Ukraine.
It appears to have stabilised in Q2 with the retail side influenced by the
impact of inflation on disposable income and the Covid shutdowns in China,
however, we are still seeing very positive prices and it is forecast the
supply side will remain tight for the foreseeable future.
Despite a drop off in the recovery of larger diamonds, which we would
associate with the poorer feed, the Company has averaged US$629 per carat (HY
2021: $436 per carat) in the period under review. Pleasingly, post period end
in Q3 we are seeing an increase in the recovery of high-value stones.
The financial results and cash position, despite the much-improved prices and
higher revenue, have been negatively influenced by the poor operational
results and the necessity to press on with the large spend on development
mining and a material increase in a number of costs areas.
As per earlier announcements, ongoing discussions have taken place with the
Teichmann Group involving both financing and the management of the Kareevlei
operation; these will hopefully be concluded at the AGM with shareholder
approval.
On the management front, a High-Level Review, at the request of the Teichmann
Group, was completed by a team of experienced consultants. The results
highlighted a need for a further review of the mine plan and the possibility
of fast-tracking the development mining to further de-risk the operation
against extreme weather and to optimise the mining fleet on site, although
this will increase cash outflow in the short term. In addition, certain
changes to the plant were recommended that would further de-risk this
operation in the wet season and enhance throughput and potentially diamond
recovery. The management and Board have been working closely with the
Teichmann Group in progressing a number of areas and will report back to
shareholders once the evaluation work is completed.
Mining
Mining (in tonnes '000) H1 2022 H1 2021 Increase
Waste (development) 1,149 646 78%
Ore 321 289 11%
Total 1,470 935 57%
Total mined tonnes in H1 2022 were 57% up on H1 2021. It is particularly
important to note that the large increase in the waste mining should be seen
as an investment for the future as a lot of development work is to prepare the
Main Pit to mine efficiently at deeper levels than was originally anticipated
and to deal with inclement weather. The strip ratio in H1 2022 was 3.6,
which is significantly higher than the life of mine strip ratio for the Main
Pit of 1.8 and a strip ratio of 2.2 in 2021. The cash cost of the excess
waste mining in H1 2022 was £1.35m (ZAR 27m) (2021: £0.26m (ZAR 5m)), which
was capitalised and will be amortised over the life of the Main Pit.
Management continues to review the life of mine plan with a view to opening up
KV3 in 2023 to provide more flexibility in the mining operation as the Main
Pit is mined at deeper levels.
Processing
Tonnes '000 H1 2022 H1 2021 Increase
Processed 260 221 18%
Grade 3.22 4.1 -20%
Carats Produced 8,214 8,949 -7%
The increase in tonnage in H1 2022, although disappointing and a lost
opportunity with the buoyant market, has to be viewed against a background of
over 600mm of rain and 40 production days lost (2021 Q2: 2 days, vs 2022 Q2:
13 days). In addition, whilst the plant was operating the feed was largely a
wet low-grade material, which hosted a high percent of fines and clay. With
the grade being down 20%, the carats produced were 7% down on 2021.
Accordingly, we have downgraded our guidance for 2022, as set out below. The
ore mining operation is now below the high clay low grade kimberlite zone and
should be supplying a better feed going forward.
The wet season has highlighted that, while improvements have been made to
enable the new plant to perform better in wet conditions, it still has
vulnerabilities. Management is now looking at a wet screening circuit at the
front end of the plant to remove a large percent of smaller sized material,
which clogs up the circuit, and treating this product through one line and by
doing so free up the secondary crushing circuit. There is also a review of the
Cone Crushers, with test work ongoing, as it is believed a more modern crusher
together with the wet screening would enhance production and improve diamond
recovery. These improvements if implemented need to be in place before the
2023 wet season.
It is pleasing to note that with the drier conditions since July the processed
tonnes are improving but the plant is yet to achieve its design capacity. This
is partly due to the mine still not being able to feed it with a high
percentage of kimberlite, which impacts on "tonne per hour" achievable on each
line and a number of ongoing teething issues, which have impacted on the plant
operating time.
Sales
Sales H1 2022 H1 2021 Increase
Carats 8,580 9,115 -5%
USD/Carat 629 436 44%
Carats sold in H1 2022 were 5% down on H1 2021 due to the operational issues
explained above.
The market has been strong throughout H1 with prices up 44% on the same period
in 2021. The average price for the six months has been influenced by a spike
in prices in early Q1 but overall, we have seen a step change in prices versus
2021 and an ongoing high demand for the Kareevlei diamonds.
The tenders in Kimberley where Kareevlei diamonds are sold have been well
supported with the opening up of travel to South Africa following the Covid
restrictions.
Mining Licence
An application for the renewal of the current Mining Licence has been
submitted to the Department of Mineral Resources & Energy in South Africa.
As at the date of approval of this report the outcome of this application has
not yet been received. The Group has approval to continue mining until such
time as the application has been processed. The Directors are of the opinion
that there is no reason to believe that the approval will not be obtained.
Market Overview /Outlook
The supply side of rough diamonds has remained under pressure and is expected
to continue to do so whilst the conflict around Ukraine exists. It is
anticipated that the retail market could soften with the impact of inflation
on disposable income, however, the Kareevlei's high-quality diamonds remains
sought after and prices achieved in July and August have been encouraging.
Large Stones
Kareevlei continues to produce high value diamonds as detailed below. We are
particularly encouraged with the year-to-date numbers when one considers the
lower grade feed for much of the year with 17 high value diamonds recovered
versus 8 for same period last year.
Date sold 2022 Carats Value Value per carat
USD000 USD000
August 11.62 84 7.2
10.02 81 8.1
9.04 76 8.4
6.77 52 7.6
6.88 52 7.5
10.35 50 4.8
July 5.97 55 9
7.4 67 9
March 19.3 116 6
12.7 128 10
8.7 104 12
6.6 63 9.5
February 11.9 211 17.6
8.3 96 8.3
13.6 78 5.8
7.5 75 10
January 6.8 63 9.3
Note: It is the Company policy to announce all stones sold with a value of in
excess of USD50k.
Financials
In the first half of 2022, the Company made an operating loss of £783,000 on
turnover of £4,079,000, compared with a loss of £539,000 on turnover of
£2,817,000 in the first half of 2021. Loss before taxation was £23,000
compared to £513,000 in 2021.
The increase in turnover reflects the increase in prices in rough diamonds
seen over the period.
The increase in the operating loss despite the increase in turnover reflects
the reduction in grades achieved whilst the mine development has been taking
place, together with rising costs. Diesel fuel, which is used extensively in
the mining operation and to provide generated power to the plant, has
increased by 53% and certain explosive costs have almost doubled. In addition,
the mine has higher staff/employee costs in anticipation of the step up in
production. Depreciation has had a major impact on the operating loss and has
increased from £161,000 to £488,000, as the new plant is depreciated from
the date it was brought into use.
Unrestricted cash at 30 June 2022 was £429,000.
Financing
In March 2022, the Company raised gross proceeds of £2.1 million by way of a
placing and subscription, as well as settling £580,000 of creditors through
issuing shares.
The funding was required to provide additional working capital to the Company
in order to:
(a) implement its upgraded mining plan to ensure consistent supply of
quality ore to the processing plant - optimising the throughput of the new 1
million tonne per annum ('Mtpa') plant, while maximising the economic life of
the mine; and
(b) pay its mining contractor, Teichmann SA Limited ("TSA"), in order to
accommodate the impact of the two operation shutdowns experienced in Q4 2021.
In addition, since the period end the Company has entered into agreements with
the Teichmann Group as described further in the Post Balance Sheet Events
section below to provide up to £1,950,157 and ZAR30m of additional funding
before costs.
Guidance
We have revised our guidance for 2022, to reflect the results to date and our
continued uncertainty over production and grade for the balance of the year
that are closely linked to the mining development at the Main Pit. It is
anticipated prices will remain at the US$500 to US$600 carat level.
We have also used a wider range covering the 2023 outlook to reflect the
potential outcomes of further mine and plant developments with a stronger
price regime reflecting the ongoing tightness in quality rough diamonds.
Revised guidance for the 2022 and 2023 periods are as follows:
Revised 2022 guidance Previous 2022 guidance Revised 2023 guidance Previous 2023 guidance 2021 actual
Tonnes processed ('000) 620-670 700-750 875-970 1,000 516
Carats produced 20,000 to 24,000 24,500 to 30,000 35,000 to 41,000 43,000 23,497
Grade 3.25 to 3.5 3.6 to 4.0 4.0 to 4.3 4.3 4.55
Value per carat (USD) 500 to 600 500 to 550 500 450 470
Revenue (USDm) 10.0 to 14.4 12.0 to 16.5 17.5 to 20.5 19 10.8
The production and mining plan are currently under review after the high level
review and once the outcomes are fully assessed the guidance will be updated
Post Balance Sheet Events
Since 30 June 2022, we are seeing an ongoing drive on the mining front to
catch up lost tonnage from H1 and this in turn will provide the plant with a
higher-grade product easier to process material from the end of August. We
have seen improvements in the processed tonnages with the plant running at 80%
capacity, but more is needed. We expect this situation to improve once the
plant is feeding a higher quality fresh kimberlite, however, to get up to full
capacity there will also have to be material improvements in running time.
Following the recommendations of the High-Level Review, the mine plan is being
reviewed both in terms of what is deemed the correct economic depth of the
pipes with more updated revenue and costs information and the benefit and
funding of pushing development mining harder earlier in the process to
maximise mining fleet capacity on site and also de-risk the mine by having
access to a wider range of ore. Additionally, test work is now being carried
out on the plant to establish if proposed improvements in terms of a wet
screen and revamped secondary crushing circuit will add the desired value and
ensure the operation can run more efficiently in the wet season. There is
also a greater focus by the Teichmann Group on a more hands-on management
style to bring stronger leadership and work culture at the mine whilst also
looking at cost reductions as the mine enters what could be an extended
inflationary environment.
The Company is looking to appoint a full time COO/GM of Kareevlei. The focus
is to find a hands-on individual with diamond mining/ processing experience.
Meiring Burger, who had agreed to hold the CEO post as an interim measure has
stepped down. A bridging arrangement has been put in place with two highly
experienced individuals supporting local management and a higher direct role
by Teichmann until a permanent replacement is appointed.
The sales value of our diamonds continues to be strong as highlighted by the
recently announced high value stones in the August tender and an average price
year to date of US$531 per carat. There is no question that with the quality
of Kareevlei diamonds, if one can get the production up and manage the wet
season better, there is significant value for shareholders.
As announced on 4 July 2022 and in the Circular on 15 August 2022, the Company
has entered into a number of agreements with the Teichmann Group. These
agreements include:
(a) On 4 July 2022, Kareevlei entered into a new extended credit facility
with its mining contractor, TSA, for up to ZAR30 million which reduces to
ZAR20 million 180 days after drawdown.
(b) The Company has issued Simple Loan Notes for £1,066,411 to the
Teichmann Group redeemable on 7 September 2022 with zero interest payable.
These will be converted into subscription shares at 7p per share after the AGM
on 7 September 2022, subject to shareholder approval being obtained. Should
approval not be granted, the Company will be required to redeem the Simple
Loan Notes at the amount invested by the Noteholders plus the greater of
£1,000,000 and the market value of the New Conversion Shares had they been
issued.
(c) The Company has agreed to amend the existing Convertible Loan Notes of
£1,610,000 issued to the Teichmann Group ("Existing CLN") to extend the
repayment date to 30 November 2025, remove the applicable interest and amend
the conversion price, such that the maximum number of shares to be issued is
unchanged.
(d) Subject to shareholder approval at the AGM, the Company will issue New
Convertible Loan Notes to the Teichmann Group ("New CLNs") for £583,746 under
the same terms as the amended Existing CLN.
(e) Subject to shareholder approval, a Broker Option has been agreed which
allows subscriptions for up to an aggregate £0.3 million at 7p per share with
priority given to existing Shareholders of the Company.
(f) The Company, SP Angel and Teichmann Company Limited ("TCL") entered
into a relationship agreement on 4 July 2022. Amongst other things TCL has the
right to appoint up to three Directors to the Board of BlueRock, provided this
is matched by the same number of Independent Directors who will retain the
casting vote.
(g) The Company, Kareevlei, TCL and TSA entered into a governance agreement
on 4 July 2022 relating to Kareevlei which sets out the future governance of
Kareevlei.
Further details of these agreements, and the security provided to the
Teichmann Group in respect of the agreements is given in the Circular and the
agreements are available on the Company's website.
I would like to thank everyone at BlueRock and Kareevlei, as well as our
shareholders and key stakeholders for their continued efforts and support.
Mike Houston
Chairman
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2022
Consolidated Statement of Financial Position
Note As at As at As at
30 June 30 June 31 December 2021
2022 2021 Audited
Unaudited Unaudited £
£ £
Assets
Non-current assets
Property, plant, and equipment 5 4,588,123 4,113,487 4,312,946
Right-of-use assets 5 540,564 559,945 517,789
Mining assets 5 3,368,872 860,290 1,839,809
Other receivables 7 534,903 522,343 492,596
9,032,462 6,056,065 7,163,140
Current assets
Inventories 6 1,052,475 822,699 802,835
Trade and other receivables 7 146,589 1,129,013 93,646
Cash and cash equivalents (including restricted cash) 8 658,319 271,557 521,771
1,857,383 2,223,269 1,418,252
Total assets 10,889,845 8,279,334 8,581,392
Equity and liabilities
Equity Attributable to Equity Holders of the Parent
Share capital 10 1,088,838 706,050 706,050
Share premium 10 10,813,027 8,656,201 8,656,201
Other equity 94,680 - 94,680
Accumulated losses (7,472,463) (6,880,518) (7,781,745)
Other reserves 2,668,379 2,711,584 3,286,179
7,192,461 5,193,317 4,961,365
Non-controlling interest (2,695,396) (2,479,235) (2,223,906)
4,497,065 2,714,082 2,737,459
Liabilities
Current liabilities
Trade and other payables 11 2,577,825 2,788,324 2,739,672
Borrowings 12 574,726 683,073 617,602
Lease liabilities 12 26,841 17,496 44,559
3,179,392 3,488,893 3,401,833
Non-current liabilities
Borrowings 12 1,881,505 924,666 1,333,345
Lease liabilities 12 629,107 620,086 564,063
Provisions 13 702,776 531,607 544,692
3,213,388 2,076,359 2,442,100
Total liabilities 6,392,780 5,565,252 5,843,933
Total equity and liabilities 10,889,845 8,279,334 8,581,392
Consolidated Statement of Comprehensive Income
Note 6 months ended 6 months ended 12 months ended 31 December 2021
30 June 30 June Audited
2022 2021 £
Unaudited Unaudited
£ £
Revenue from contracts with customers 4,079,261 2,816,862 7,846,588
Other income 3,298 4,149 8,672
Operating expenses (4,865,682) (3,359,639) (7,940,227)
Operating loss (783,123) (538,628) (84,967)
Finance income 13,843 13,599 31,552
Finance charges (225,593) (137,999) (384,288)
Change in fair value of financial instruments designated at FVTPL 3,198 9,711 18,520
Foreign exchange (loss) / gain 3 968,390 140,403 (929,714)
Loss before taxation (23,285) (512,914) (1,348,897)
Taxation - - -
Total loss for the period (23,285) (512,914) (1,348,897)
Total loss for the period, net of tax attributable to:
Owners of the parent 248,547 (321,363) (1,222,590)
Non-controlling interest (271,832) (191,551) (126,307)
(23,285) (512,914) (1,348,897)
Other Comprehensive Income:
Exchange differences on translating foreign operations (767,918) (99,520) 631,576
Total comprehensive loss, net of tax (791,203) (612,434) (717,321)
Total comprehensive loss, net of tax attributable to:
Owners of the parent (319,713) (395,008) (755,224)
Non-controlling interest (471,490) (217,426) 37,903
(791,203) (612,434) (717,321)
Earnings per share - from continuing activities
Basic earnings per share 15 0.03 (0.05) (0.09)
Dilutive earnings per share 15 0.02 (0.05) (0.09)
Consolidated Statement of Changes in Equity
Share capital Share premium Accumulated losses Other reserves and equity Total attributable to equity holders of the Group Non-controlling interest Total equity
£ £ £ £ £ £ £
Balance at 1 January 2021: 454,333 6,885,796 (7,223,054) 3,393,154 3,510,229 (2,261,809) 1,248,420
Loss for the period - - (321,363) - (321,363) (191,551) (512,914)
Other comprehensive income:
Foreign exchange movements - - - (73,645) (73,645) (25,875) (99,520)
Total comprehensive loss: - - (321,363) (73,645) (395,008) (217,426) (612,434)
Transactions with shareholders:
Issue of share capital 251,717 1,831,255 - - 2,082,972 - 2,082,972
Share issue expenses - (60,850) - - (60,850) - (60,850)
Issue of share options - - - 55,974 55,974 - 55,974
Transfer of lapsed options to accumulated loss - - 663,899 (663,899) - - -
Total transactions with shareholders: 251,717 1,770,405 663,899 (607,925) 2,078,096 - 2,078,096
Balance at 30 June 2021 (unaudited): 706,050 8,656,201 (6,880,518) 2,711,584 5,193,317 (2,479,235) 2,714,082
Balance at 1 July 2021: 706,050 8,656,201 (6,880,518) 2,711,584 5,193,317 (2,479,235) 2,714,082
Loss for the period - - (901,227) - (901,227) 65,244 (835,983)
Other comprehensive income:
Foreign exchange movements - - - 541,011 541,011 190,085 731,096
Total comprehensive loss: - - (901,227) 541,011 (360,216) 255,329 (104,887)
Transaction with shareholders:
Issue of share capital - - - - - - -
Share issue expenses - - - - - - -
Issue of share options - - - 33,584 33,584 - 33,584
Value of conversion rights-convertible notes - - - 94,680 94,680 - 94.680
Total transactions with shareholders: - - - 128,264 128,264 - 128,264
Balance at 31 December 2021 706,050 8,656,201 (7,781,745) 3,380,859 4,961,365 (2,223,906) 2,737,459
Balance at 1 January 2022: 706,050 8,656,201 (7,781,745) 3,380,859 4,961,365 (2,223,906) 2,737,459
Profit/(Loss) for the period - - 248,547 - 248,547 (271,832) (23,285)
Other comprehensive income:
Foreign exchange movements - - - (568,260) (568,260) (199,658) (767,918)
Total comprehensive loss: - - 248,547 (568,260) (319,713) (471,490) (791,203)
Transaction with shareholders:
Issue of share capital 382,788 2,296,726 - - 2,679,514 - 2,679,514
Share issue expenses - (139,900) - - (139,900) - (139,900)
Issue of share options - - - 11,195 11,195 - 11,195
Transfer lapsed share options to retained losses - - 60,735 (60,735) - - -
Total transactions with shareholders: 382,788 2,156,826 60,735 (49,540) 2,550,809 - 2,550,809
Balance at 30 June 2022 (unaudited) 1,088,838 10,813,027 (7,472,463) 2,763,059 7,192,461 (2,695,396) 4,497,065
Consolidated Statement of Cash Flows
6 months ended 6 months ended 12 months ended 31 December 2021
30 June 30 June Audited
2022 2021 £
Unaudited Unaudited
£ £
Operating activities
Cash used in operations 14 (504,101) (42,781) 2,405,359
Net cash flows from/(used in) operating activities (504,101) (42,781) 2,405,359
Investing activities
Purchase of property, plant and equipment 5 (1,606,414) (1,813,073) (4,065,422)
Proceeds on sale of property, plant and equipment 5 - - 56,572
Movement in other receivables 7 1,063 (91,040) (99,030)
Net cash used in investing activities (1,605,351) (1,904,113) (4,107,880)
Financing activities
Proceeds on share issue (net of share issue costs) 10 1,960,100 1,237,160 1,436,527
Repayments of borrowings 12 (371,562) (93,151) (610,125)
Loans drawn down 12 668,861 136,170 941,146
Repayments of lease liabilities 12 (47,196) (42,655) (87,750)
Movement in restricted cash 8 (3,968) (3,585) (7,082)
Net cash received from financing activities 2,206,235 1,233,939 1,672,716
Net (decrease) / increase in cash and cash equivalents 96,783 (712,955) (29,805)
Cash and cash equivalents at the beginning of the period 8 315,353 355,464 355,463
Foreign exchange differences 17,191 408,798 (10,305)
Cash and cash equivalents at the end of the period 8 429,327 51,307 315,353
Notes to the Interim Consolidated Financial Statements
1. Accounting policies
1.1 General information and basis of preparation
The condensed interim consolidated financial statements (the "interim
financial statements") are for the six-month period ended 30 June 2022.
These interim financial statements have not been audited or reviewed, and the
financial information set out in this report does not constitute statutory
accounts as defined by the Companies Act 2006. The comparative figures for the
year ended 31 December 2021 were derived from the statutory accounts for the
year to 31 December 2021, which have been delivered to the Registrar of
Companies. Those accounts received an unqualified audit report which did not
contain statements under sections 498(2) or (3) (accounting records or returns
inadequate, accounts not agreeing with records and returns or failure to
obtain necessary information and explanations) of the Companies Act 2006.
The interim financial statements have been prepared on the basis of the
accounting policies set out in the December 2021 financial statements of
BlueRock Diamonds plc, amended for new standards effective from 1 January 2022
and IAS 34 "Interim Financial Reporting" on a going concern basis. They are
presented in sterling, which is also the functional currency of the parent
company. They do not include all the information required in annual financial
statements in accordance with IFRS and should be read in conjunction with the
consolidated financial statements of the Group for the period ended 31
December 2021.
The interim financial statements have been approved for issue by the Board of
Directors on 7 September 2022.
Going concern
The Group has prepared forecasts covering the period to 31 December 2023.
Appropriate diligence has been applied by the directors who believe that the
forecasts are prepared on a realistic basis using the best available
information. The Group had cash balances of £429,000 excluding restricted
cash. In addition, as set out in the Post Balance Sheet Events section of
the Chairman's Statement, the Group has entered into Agreements with the
Teichmann Group which will provide up to £1,950,000 plus ZAR 30m of
additional funding before costs, subject to shareholder approval.
In making its going concern assessment, the Board has assumed that shareholder
approval will be obtained, the future development plans adopted by the ongoing
board are financed and that suitable arrangements are made with creditors as
required from time to time.
After review of these uncertainties the Directors have a reasonable
expectation that the Group has adequate resources to continue in operational
existence for the foreseeable future. For this reason, we continue to adopt
the going concern basis in preparing this half year report and accounts of the
Group. Should shareholder approval not be obtained at the forthcoming AGM, the
future development plans are not financed and suitable arrangements with the
group's creditors are not obtained, significant doubt would be cast on the
Group's ability to continue as a going concern.
1.2 Changes in accounting standards and disclosures
There are no changes to the accounting policies as described in the 2021
annual financial statements.
The other amendments or interpretation, which are effective in 2022 and
relevant to the Group's operations, do not have a significant effect on the
Group's accounting policies.
The Group has not early adopted any standard or amendments that have been
issued but not yet effective.
2. Significant judgements and sources of estimation uncertainty
In the application of the Group's accounting policies the Directors are
required to make estimates and assumptions about the carrying amounts of
assets and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates.
The judgements, estimates and assumptions applied in the interim financial
statements including the key sources of estimation uncertainty were the same
as those applied in the financial statements for the period ended 31 December
2021.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and
future periods.
3. Foreign exchange (loss) / gain
6 months ended 30 June 6 months ended 12 months ended
2022 30 June 31 December
£ 2021 2021
Unaudited £ £
Unaudited Audited
Foreign exchange (loss) / gain 968,390 140,403 (929,714)
The foreign exchanges (loss) / gain relate to the translation of balances
denominated in foreign currencies at year-end exchange rates.
4. Segmental reporting
Operating segments are identified based on internal reports about components
of the Group that are regularly reviewed by the chief operating decision maker
to allocate resources to the segments and to assess their performance.
The Group's operations relate to the exploration for, and development of
mineral deposits in the Kimberley region of South Africa and as such the Group
has only one reportable segment. The non-current assets in the Kimberley
region in June 2022 were £9,032,462 (June 2021: £6,056,066; December 2021:
£7,163,138)
All revenue consists of sales of diamonds in South Africa through auctions as
is customary in the industry. The Company sold its diamonds through auctions
run by CS Diamonds (Pty) Ltd during the period.
5. Property, plant and equipment
Cost Accumulated depreciation Carrying value
30 June 2022 £ 30 June 2022
£ £
Unaudited
Motor vehicles 36,195 (16,610) 19,585
Plant and machinery 6,438,946 (1,873,958) 4,564,988
Leasehold improvements 4,733 (1,183) 3,550
Right-of-use-assets 766,038 (225,474) 540,564
Mining assets 3,761,409 (392,537) 3,368,872
Total 11,007,321 (2,509,762) 8,497,559
Reconciliation of property, plant and equipment
Carrying value Additions Depreciation Disposals and transfers FX revaluation Carrying value
1 January 2022 £ £ 30 June 2022
£ £ £ £
Audited Unaudited
Motor vehicles 19,706 - (1,831) - 1,710 19,585
Plant and machinery 4,289,760 196,457 (297,629) - 376,400 4,564,988
Leasehold improvements
3,480 - (233) 303 3,550
Right-of-use-assets 517,789 17,093 (39,607) - 45,289 540,564
Mining assets 1,839,809 1,497,041 (148,839) - 180,861 3,368,872
6,670,544 1,710,591 (488,139) - 604,563 8,497,559
Right-of-use assets comprise the following:
Land and buildings 438,091 17,093 (32,216) - 38,374 461,342
Motor vehicles 79,698 - (7,391) - 6,915 79,222
517,789 17,093 (39,607) - 45,289 540,564
Included under mining assets are waste stripping costs to the value of
£2,228,898 (June 2021: £258,183; December 2021: £844,014 that have been
capitalised.
6. Inventories
30 June 30 June 31 December
2022 2021 2021
£ £ £
Unaudited Unaudited Audited
Diamonds on hand 457,989 258,642 346,201
Work in progress 582,228 547,811 435,722
Consumable stores 12,258 16,246 20,912
1,052,475 822,699 802,835
7. Trade and other receivables
30 June 30 June 31 December
2022 2021 2021
£ £ £
Unaudited Unaudited Audited
Current receivables:
Trade receivables 4,974 693,862 4,835
Prepayments 18,429 12,701 17,894
VAT 116,937 219,850 43,455
Other receivables 6,249 202,600 27,462
Total current receivables 146,589 1,129,013 93,646
Non-current receivables
Other receivables 534,903 522,343 492,596
Total non-current receivables 534,903 522,343 492,596
The carrying value of all trade and other receivables is considered a
reasonable approximation of fair value.
Other non-current receivables represent amounts held by financial institutions
and the Department of Minerals and Energy as guarantees in respect of
environmental rehabilitation obligations in respect of the Group's South
African mines.
8. Cash and cash equivalents
30 June 30 June 31 December
2022 2021 2021
£ £ £
Unaudited Unaudited Audited
Cash in bank and on hand 658,319 271,557 521,771
The above includes unrestricted cash of £429,327, and bank balances to the
value of £228,992 (30 June 2021: £220,250, 31 December 2021: £206,418) are
not available for use as it is held in trust with the Group's attorneys. This
account is held as security for the claims submitted by a former director of
the Group and may only be utilised against this claim, should it be
successful.
9. Share Based Payments
The Company had the following share-based payment agreements which are
described below:
Date of grant Number of shares granted Contractual life Exercise price
Type of arrangement
Directors share option plan - Tranche 9 16/05/2019 228,060 5 years 50p
Directors share option plan - Tranche 10 18/02/2020 130,320 5 years 85p
Directors share option plan - Tranche 11 18/02/2020 465,615 5 years 85p
Tranche 9 options are split with half vesting 1 year from the date of grant
and half vesting immediately on the date of grant. Tranche 9 options have
fully vested.
Tranche 10 options vested immediately on the date of grant.
Tranche 11 options are split with half vesting 1 year from the date of grant
and half vesting 2 years from the date of grant. Tranche 11 options have fully
vested.
Movements in the number of share options outstanding and their related
weighted average prices are as follows:
30 June 2022 31 December 2021 30 June 2021
Average exercise price in pence per share Number of options Average exercise price in pence per share Number of options Average exercise price in pence per share Number of options
Outstanding at the beginning of the period 132.77 828,450 132.77 828,450 88.35 828,450
Granted - - - - - -
Lapsed (2,500) (4,455) - - - -
Exercised - - - - - -
Outstanding at the period / year end 75.31 823,995 132.77 828,450 88.35 828,450
Exercisable at the period / year end 75.31 823,995 89.66 595,642 89.66 595,642
Options are valued at date of grant using the Black-Scholes option pricing
model.
There were no new share options granted during the period. Tranche 5 options
lapsed during the period.
The fair value per option of options granted during 2020, and the assumptions
used in the calculations are shown below:
2020
Tranche 10 Tranche 11
Average grant date share price (p) 88.00 88.00
Average exercise price (p) 85.00 85.00
Share price volatility (p.a) 82.79% 82.79%
Risk-free interest rate (p.a) 0.48% 0.48%
Dividend yield (p.a) 0% 0%
Average contractual life (years) 5 5
Average fair value per option (p) 57.70 57.70
The total share-based payment expense for the period ended 30 June 2022 was
£11,195 (June 2021: £55,974; December 2021: £89,558).
10. Share capital and share premium
30 June 30 June 31 December
2022 2021 2021
£ £ £
Unaudited Unaudited Audited
Number of Ordinary shares 21,776,755 14,121,002 14,121,002
Ordinary share capital of 5p (June 2021: 5p, December 2021: 5p) per share 1,088,838 706,050 706,050
Share premium 10,813,027 8,656,201 8,656,201
11,901,865 9,362,251 9,362,251
In the period ended 30 June 2022 the following Ordinary share issues occurred:
Date of issue Details of issue Number of ordinary shares Share capital Share premium
£ £
At 1 January 2022 14,121,002 706,050 8,656,201
31 March 2022 Placing and equity issue 6,000,000 300,000 1,800,000
31 March 2022 Share allotment costs - - (139,900)
31 March 2022 Allotment of shares as repayment of suppliers
1,655,753 82,788 496,726
At 30 June 2022 21,776,755 1,088,838 10,813,027
11. Trade and other payables
30 June 30 June 31 December
2022 2021 2021
£ £ £
Unaudited Unaudited Audited
Trade payables 2,426,136 2,655,379 2,568,336
Accrued expenses 129,645 110,958 151,076
Other payables 22,044 21,987 20,260
2,577,825 2,788,324 2,739,672
An amount of £168,691 (30 June 2021: £166,727, 31 December 2021: £150,339)
is included within trade payables for amounts being claimed as being due to
companies related to a former director of the Company. This amount is
disputed in full by the Company based on legal advice received.
Within other payables is an amount of £22,044 (30 June 2021: £21,987, 31
December 2021: £20,260) which relates to an amount claimed by a former
director and which, based on legal advice received by the company, is disputed
in full. See note 17 for further details.
12. Borrowings and leases liabilities
30 June 30 June 31 December
2022 2021 2021
£ £ £
Unaudited Unaudited Audited
Convertible loans 2,236,003 855,344 1,414,845
Loan facilities 220,228 740,388 532,904
Embedded derivative - 12,007 3,198
2,456,231 1,670,739 1,950,947
Lease liabilities 655,948 637,582 608,622
3,112,179 2,308,321 2,559,569
30 June 30 June 31 December
2022 2021 2021
£ £ £
Unaudited Unaudited Audited
Due within the year
Convertible loans 448,037 428,157 427,187
Loan facilities 126,689 254,533 187,217
Embedded derivative - 383 3,198
574,726 683,073 617,602
Lease liabilities 26,841 17,496 44,559
601,567 700,569 662,161
Due greater than one year
Convertible loans 1,787,965 427,187 987,658
Loan facilities 93,540 485,855 345,687
Embedded derivative - 11,624 -
1,881,505 924,666 1,333,345
Lease liabilities 629,107 620,086 564,063
2,510,612 1,544,752 1,897,408
Convertible loans and embedded derivative
The movement on each convertible loan liability component can be summarised as
follows:
Embedded derivative
£ Converti-ble loans - T Leslie and M Poole 14.5% Convertible loans - Teichmann Group Total
£ £ £
Balance at 1 January 2021 21,718 815,539 - 837,257
Finance charge: unwinding the discount factor - 39,805 - 39,805
Fair value adjustment to embedded derivative (9,711) - - (9,711)
Balance at 30 June 2021 12,007 855,344 - 867,351
Drawdown - - 941,146 941,146
Other equity - value of conversion rights - - (94,680) (94,680)
Repayments - (462,500) - (462,500)
Finance charge: unwinding the discount factor - 34,343 141,192 175,535
Fair value adjustment to embedded derivative (8,809) - - (8,809)
Balance at 31 December 2021 3,198 427,187 987,658 1,418,043
Drawdown - - 668,861 668,861
Finance charge: unwinding the discount factor - 20,850 131,447 152,297
Fair value adjustment to embedded derivative (3,198) - - (3,198)
Balance at 30 June 2022 - 448,037 1,787,966 2,236,003
Convertible loans - T Leslie and M Poole
At 30 June 2022, the Group had in issue convertible loan stocks of £462,500
which had an initial term until 16 October 2021. On 27 February 2020, the
Company announced that 50% of the total loan had been transferred to Mr Tim
Leslie, a non-executive Director of BlueRock Diamonds Plc. The Group had an
option, at its own discretion, to increase the initial term by a further 12
months. This option was exercised during 2021 and the balance of the loan note
is now payable on 16 October 2022.
The terms of the convertible loan note provide a mechanism for weighted
conversion price revisions should additional funds be raised below the
prevailing conversion price. The current conversion price is 69p. This option
to convert the loan into shares has been treated as a separate financial
instrument, as an embedded derivative. This is due to a clause in the updated
convertible loan note agreement which will require the Company to issue a
variable number of shares if future fundraising over life of the convertible
loan note raises additional funds at a price per Ordinary share of less than
5p. This requires a separate valuation as it does not relate to the host
contract.
In addition, if the Company sells its interest in Kareevlei Mining (Pty) Ltd
before the final repayment date for consideration equivalent to or greater
than 120% of the loan note outstanding then the notes will become redeemable
and a 20% premium will be payable to the note holder.
Management have carried out an assessment of the terms of the convertible loan
and have judged that the instrument consists of two components:
· a loan instrument; held at amortised cost
· an embedded redemption feature (payable on a sale of the Group's
interest for consideration greater than 120% of the loan note value). The
embedded derivative should be recognised separately as a derivative financial
instrument at fair value through profit and loss (FVTPL).
A fair value exercise to determine the value of the two components was
undertaken by the Directors at the date the convertible loan was initially
drawn down. The fair value of the host loan instrument (including the embedded
redemption feature) has been valued as the residual of:
· The fair value of the first draw down on 16 October 2014 is
discounted at a commercially applicable rate of 9.25%. The fair values of the
draw downs on 27 May 2016 and 2 October 2016 have been discounted at a
commercially applicable rate of 10.5%.
14.5% Convertible Loans - Teichmann Group
On 20 September 2021, the Group entered into an agreement to issue a total of
161 14.5% convertible notes for £1,610,000 to the Teichmann Group. The loan
notes are convertible into ordinary shares of the entity, at 1) the election
of the holder, 2) election of the entity if and when its shares trade in
excess of £0.60 per share, 3) on the automatic conversion dates as stipulated
in the agreement or 4) on 30 November 2024, the maturity date. The loan notes
are convertible into 6,465,247 ordinary shares. Interest is payable on the
maturity date.
The initial fair value of the liability portion of the bond was determined
using a market interest rate for an equivalent non-convertible bond at the
issue date. The liability is subsequently recognised on an amortised cost
basis until extinguished on conversion or maturity of the bonds. The remainder
of the proceeds are allocated to the conversion option and recognised in
shareholders' equity (net of income tax), due to the fact that it meets the
"fixed for fixed" test as the number of conversion shares are determined at
the issue date. It is not subsequently remeasured.
Loan facilities comprise the following:
M Poole
In 2017 the Company entered into a loan facility agreement with Mark Poole. A
90-day interest free period was included in the agreement from the date of the
first draw down. After this point interest accrues on the capital balance at a
rate of 10% per annum, which is payable quarterly in arrears. All capital to
be repaid within 5 years from the date of the draw down on the facility.
Additionally, a security over the property, plant and equipment of Kareevlei
Mining (Pty) Limited is held.
During the period ended 30 June 2022 an interest charge of £1,494 (June 2021:
£3,118, December 2021: £5,150) was recognised on the total capital drawn
down. As of 30 June 2022, the balance due was £16,565.
Numovista (Pty) Ltd
During March 2020 Kareevlei Mining (Pty) Ltd entered into a sale of assets
agreement with Numovista (Pty) Ltd whereby mining equipment was purchased from
Numovista (Pty) Ltd. Ownership of the equipment transferred with the payment
of the initial deposit. The balance of the loan is repayable in 36 monthly
instalments of £18,395. The effective interest rate is 9.75%. As of 30 June
2022, the balance due was £203,663.
13. Provisions
Reconciliation of provisions
Rehabilitation costs
£
Balance at 1 January 2021 454,197
Change in estimate 55,579
Unwinding of discount 15,963
Exchange differences 5,868
Balance at 30 June 2021 531,607
Change in estimate 41,156
Unwinding of discount 16,309
Exchange differences (44,380)
Balance at 31 December 2021 544,692
Change in estimate 87,084
Unwinding of discount 21,511
Exchange differences 49,489
Balance at 30 June 2022 702,776
The provision for environmental rehabilitation closure cost was independently
assessed by RS Mellett of OMI Solutions (Pty) Ltd. The closure cost assessment
reports over the Remainder of the Farm No. 113 (Skietfontein), Portion of
Portion 2 (Kareeboompan) of the Farm 142, Portion 1 (Westhoek) of the Farm
113, and Portion 2 (Klipvlei) of the Farm 113. The financial provision was
calculated in accordance with Regulation 54 of the Minerals and Petroleum
Resources Development Act 2002 (Act 28 of 2002) during March 2022.
In determining the amounts attributable to the rehabilitation provision at the
Kareevlei mining area, management used a discount rate of 7.25% (30 June 2021:
7%, 31 December 2021: 7.25%), estimated rehabilitation timing of 9 years (30
June 2021: 10 years, 31 December 2021: 9 years) and an inflation rate of 4.63%
(30 June 2021: 4.37%, 31 December 2021: 4.63%).
14. Cash used in operations
30 June 30 June 31 December 2021
2022 2021 £
£ £ Audited
Unaudited Unaudited
Loss before taxation (23,285) (512,914) (1,348,897)
Adjustments for non-cash items:
Depreciation and amortisation 488,139 161,156 468,241
Foreign exchange movement (968,390) (140,403) 929,714
Embedded derivative charge (3,198) (9,711) (18,520)
Share based payment expense 11,195 55,974 89,557
Interest accrued on borrowings and lease liabilities 196,196 100,012 326,646
Interest accrued on provisions 21,511 15,963 32,272
Impairment losses - - 83,392
(Gains)/Loss on sale of property, plant and equipment - - (16,488)
Changes in working capital:
(Increase)/decrease in trade and other receivables (46,553) (868,714) (54,565)
Increase/(decrease) in trade and other payables (3,249) 1,508,619 2,311,680
(Increase) / decrease in inventories (176,467) (352,763) (397,673)
(504,101) (42,781) 2,405,359
15. Earnings per share
30 June 30 June 31 December
2022 2021 2021
£ £ £
Unaudited Unaudited Audited
Basic earnings per share
Profit/(Loss) attributable to ordinary shareholders 248,547 (321,363) (1,222,590)
Weighted average number of shares 8,872,477 5,851,966 12,970,498
Basic profit/(loss) per share 0.03 (0.05) (0.09)
Dilutive earnings per share
Earnings used in the calculation of basic earnings per share
248,547
Effect of dilution:
Interest on 14.5% Convertible Loan Notes - Teichmann Group (net of tax)
106,472
Interest on Convertible Loan Notes -T Leslie and M Poole (net of tax)
16,889
Share option charge on directors' share options
9,068
Earnings used in the calculation of dilutive earnings per share
380,976
Weighted average number of shares used in calculation of basic earnings per
share
8,872,477
Effect of dilution:
Future shares to be issued on conversion of 14.5% Convertible Loan Notes -
Teichmann Group
6,465,247
Future shares to be issued on conversion of Convertible Loan Notes - T Leslie
and M Poole
666,724
Future shares to be issued on exercise of directors' share options
823,995
Weighted average number of shares after dilution 16,828,443
Diluted earnings per share 0.02
No comparative figures are given for diluted earnings per share as share options granted to directors and convertible loan notes issued, were antidilutive for prior periods.
16. Related party transactions
Relationships
Minority Interest ‑ William van Wyk Minority interest in Kareevlei Mining (Pty) Ltd
Ghaap Mining (Pty) Ltd William van Wyk is a majority shareholder of this company
Michael Houston Executive Chairman
David Facey Financial Director
Tim Leslie Non-Executive Director
Rob Croll Non-Executive Director
G Teichmann Non-Executive Director
AT Simbanegavi (Gus) Former Chief Operating Officer
AM Burger Chief Executive Officer of Kareevlei Mining (Pty) Ltd
Minexec (Pty) Ltd Company controlled by AM Burger
Teichmann Company Limited Significant shareholder of BlueRock Diamonds Plc
Teichmann South Africa (Pty) Ltd Associated Company of Teichmann Company Limited
Numovista (Pty) Ltd Common shareholder with significant influence
Issue of Share Options
Mike Houston, David Facey and Gus Simbanegavi hold the following share
options:
Director Total no. of share options held
Mike Houston 279,304
David Facey 181,564
Gus Simbanegavi 363,127
No share options were issued in the six-month period to 30 June 2022.
Borrowings from related parties
William van Wyk
During March 2018 the Group entered into a lease facility agreement with
William van Wyk, whereby motor vehicles are leased over a term of 72 months at
a rate of 12.5% per annum with the final repayment during June 2024. As at 30
June 2022 the balance payable on the lease facility was £16,514 (June 2021:
£24,404; December 2021: £18,762).
Interest paid: £1,016 (June 2021: £1,405; December 2021: £2,598)
Gus Simbanegavi
During March 2021 the Group entered into a lease facility agreement with Gus
Simbanegavi, whereby a motor vehicle is leased over a term of 72 months at a
rate of 7% per annum with the final repayment during March 2027. As at 30 June
2022 the balance payable on the lease facility was £34,085.
Interest paid: £1,217 (June 2021: £885; December 2021: £2,144)
Numovista (Pty) Ltd
As at 30 June 2022 the balance due on the loan facility granted to the group
was £203,663 (June 2021: £554,761; December 2021: £493,833). See note 12
for further details.
Trade and other payable due to related party
Teichmann South Africa (Pty) Ltd - trade payables of £1,540,544 (30 June
2021: £1,353,366; 31 December 2021: £1,183,055) and the Teichmann Group had
convertible loan notes as set out in note 12.
Transactions with related parties:
Teichmann South Africa (Pty) Ltd - Contractor fees paid - £1,925,100 (30 June
2021: £1,603,682, 31 December 2021: £3,651,904).
Ghaap Mining (Pty) Ltd - Contractor fees paid - £21,986 (30 June 2021:
£46,376, 31 December 2021: £69,673).
Minexec (Pty) Ltd - Consulting fees paid - £73,611
Diamond sales to D Facey - £nil (30 June 2021: £nil, 31 December 2021:
£2,062)
Directors' remuneration
The following directors' remuneration were paid during the period:
M Houston - received fees of £50,000 (30 June 2021: £32,500, 31 December
2021: £79,167)
D Facey - received fees of £50,000 (30 June 2021: £31,000, 31 December 2021:
£81,000)
G Simbanegavi - received fees of £5,000 (30 June 2021: £15,000 and 31
December 2021: £30,000)
T Leslie - received fees of £10,000 (30 June 2021: £10,833, 31 December
2021: £20,833)
R Croll - received fees of £15,000 (30 June 2021: £1,875, 31 December 2021:
£9,375)
Key Management personnel
G Simbanegavi - received a salary from Kareevlei Mining (Pty) Ltd of £34,074
(30 June 2021 £51,376 and 31 December 2021: £119,621)
17. Contingent liabilities
The amounts payable to CB Visser and his related companies as disclosed in
note 11, are currently under dispute. CB Visser is a former director and CEO
of both Kareevlei Mining (Pty) Ltd and BlueRock Diamonds Plc. who resigned
during September 2016. The total claim submitted by him amounts to £241,731
of which £185,624 has been accounted for under trade and other payables. The
Group has given security for the amount of £228,992 in respect of the above
claim. This security is held in trust by the Group's lawyers. The Group's
legal advisors are of the opinion that based on current available information,
the claims are without merit.
18. Events after the reporting period
As announced on 4 July 2022 and in the Circular on 15 August 2022, the Company
has entered into a number of agreements with the Teichmann Group. These
agreements include:
(h) On 4 July 2022, Kareevlei entered into a new extended
credit facility with its mining contractor, TSA, for up to ZAR30 million which
reduces to ZAR20 million 180 days after drawdown.
(i) The Company has issued Simple Loan Notes for £1,066,411 to the
Teichmann Group redeemable on 7 September 2022 with zero interest payable.
These will be converted into subscription shares at 7p per share after the AGM
on 7 September 2022, subject to shareholder approval being obtained. Should
approval not be granted, the Company will be required to redeem the Simple
Loan Notes at the amount invested by the Noteholders plus the greater of
£1,000,000 and the market value of the New Conversion Shares had they been
issued.
(j) The Company has agreed to amend the existing Convertible Loan Notes
issued to the Teichmann Group ("ECLN") to extend the repayment date to 30
November 2025, remove the applicable interest and amend the conversion price,
such that the maximum number of shares to be issued is unchanged.
(k) Subject to shareholder approval at the AGM, the Company will issue New
Convertible Loan Notes to the Teichmann Group ("NCLN") for £583,746 under the
same terms as the amended ECLN.
(l) Subject to shareholder approval a Broker Option has been agreed
which allows subscriptions for up to an aggregate £0.3 million at 7p per
share with priority given to existing Shareholders of the Company.
(m) The Company, SP Angel and TCL entered into a relationship agreement on 4
July 2022. Amongst other things TCL has the right to appoint up to three
Directors to the Board of BlueRock, provided this is matched by the same
number of Independent Directors who will retain the casting vote.
(n) The Company, Kareevlei, TCL and TSA entered into a governance
agreement on 4 July 2022 relating to Kareevlei which sets out the future
governance of Kareevlei.
Further details of these agreements, and the security provided to the
Teichmann Group in respect of the agreements is given in the Circular and the
agreement are available on the Company's website.
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.
**ENDS**
For further information, please visit BRD's website www.bluerockdiamonds.co.uk
(http://www.bluerockdiamonds.co.uk) or contact:
BlueRock Diamonds PLC
Mike Houston m.houston@bluerockdiamonds.co.uk
David Facey, FD dfacey@bluerockdiamonds.co.uk (mailto:dfacey@bluerockdiamonds.co.uk)
SP Angel (NOMAD and Broker)
Stuart Gledhill / Caroline Rowe Tel: +44 (0)20 3470 0470
St Brides Partners Ltd (Financial PR)
Isabel de Salis / Charlotte Page info@stbridespartners.co.uk (mailto:info@stbridespartners.co.uk)
Notes to editors:
BlueRock Diamonds is an AIM-listed diamond producer which operates the
Kareevlei Diamond Mine near Kimberley in South Africa which produces diamonds
of exceptional quality and ranks in the top ten in the world in terms of
average value per carat. The Kareevlei licence area covers 3,000 hectares and
hosts five known diamondiferous kimberlite pipes. As at February 2021, it was
estimated that the remaining Inferred Mineral Resource from the four
kimberlite pipes (KV1, KV2, KV3 and KV5) represents a potential inground
number of carats of 407,600.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
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