REG - BlueRock DiamondsPLC - Q1 2022 Production Update

Bluerock DiamondsAnnouncement

13/04/2022 07:00

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RNS Number : 1866I  BlueRock Diamonds PLC  13 April 2022

BlueRock Diamonds PLC / AIM: BRD / Sector: Natural Resources

13 April 2022

BlueRock Diamonds PLC ('BlueRock' or the 'Company')

Q1 2022 Production Update

 

BlueRock Diamonds PLC, the AIM listed diamond producer, which owns and
operates the Kareevlei Diamond Mine ('Kareevlei') in the Kimberley region of
South Africa, is pleased to announce its Q1 2022 production update.

 

Overview

 

                           Q1 2022  Q1 2021  % Variation
 Tonnes Produced           115,356  86,005   34%
 Grade cpht                4.02     4.08     -1.5%
 Carats produced           4,643    3,507    32%
 Carats sold               5,887    4,004    47%
 Avg. price per carat USD  686      446      54%

 

BlueRock Executive Chairman, Mike Houston, said, "The Q1 2022 production
figures are encouraging as they were achieved in a period that once again saw
extremely wet weather conditions that have persisted into April.  As
mentioned in our announcement dated 31 March 2022, we are concentrating on
mine development to ensure a consistent supply of ore, which requires a
significant increase in waste mining in the short and medium term.
  Although mined tonnes achieved are significantly higher than the
comparable period in 2021, the rain has delayed progress in this area
impacting on quality ore supply in April. Management has thus taken steps to
make further improvements to the processing operation, which will
unquestionably help in ramping up production as we move into the drier weather
conditions.

 

"The market for Kareevlei diamonds has remained extremely positive throughout
the quarter, with carats sold up 47% and prices at an exceptional average of
$686 per carat driving strong revenue flows.  The outlook remains firm with
the supply side, which was already tight prior to the current situation in
Ukraine, further tightened with the uncertainty of supply of quality rough
diamonds. Notably, we continue to recover some excellent stones with nine high
value diamonds recovered/sold in Q1 2022.

 

"Looking ahead, with a stronger balance sheet having recently completed a
£2.1m placing before expenses, and a fair wind with regards to the diamond
market, BlueRock is well positioned to achieve a significant step-change in
its production/financial profile."

 

Large stones recovered in 2022

 

 Date sold 2022  Carats  Value    Value per carat USD000

                         USD000
 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 Company policy to announce all stones sold with a value of in
excess of USD50k.

 

Outlook

 

The Company's guidance for 2022 and 2023 remains unchanged and is as follows:

                             Actual: 2021   Outlook: 2022  Outlook: 2023
  Tonnes processed ('000)   516             900-950        1,000
  Carats produced           23,497          36,000-43,000  43,000
  Grade                     4.55            4.0 to 4.5     4.3
  Value Per Carat (USD)     470             450             450
 Revenue (USDm)             10.8            16 to 19       19

 

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
 SP Angel (NOMAD and Broker)

 Stuart Gledhill / Caroline Rowe        Tel: +44 (0)20 3470 0470
 St Brides Partners Ltd (Financial PR)

 Isabel de Salis / Oonagh Reidy         bluerock@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 with a combined inferred
resource of 10.4 million tonnes / 516,200 carats (February 2021); based on its
planned production of 1 million tonnes per annum, this provides a minimum
10-year life of mine.

 

 

 

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