BlueRock Diamonds PLC reported record results in its recently released production update for Q3 2019 at its Kareevlei Diamond Mine  situated  in the Kimberley region of South Africa.

The Company said in Q3 2019 it witnessed record production volumes of 92,500 tonnes as against 63,600 tonnes  in the same period of the previous year;  representing an increase of 45%. This, the Company stressed, was achieved despite the shutdown of the plant for 19 days in end July and early August  2019, which was necessitated in order to install the new crusher.  

“In September, the Company processed over 40,000 tonnes, a month earlier than planned,” BlueRock noted further. “The increased volumes together with increased grade led to record levels of diamonds being recovered in the quarter and, thus, record levels of revenue.”

For the quarter, BlueRock achieved a grade of 4.30 cpht,  37% higher than the grade of 3.13 cpht achieved in Q3 2018.

The real jump however was in revenue,  which rose by 191% y-o-y in Q3 1019, to US$1,786,000; from US$614,000 for Q3 2019. The average price achieved stood at US$432 per carat on sales of 4,139 carats; as compared to US$341 per carat for 1,834 carats sold in  Q3 2018.

 “There were 1,149 carats on hand at the end of September, which will be placed in the October tender (1,326 carats on hand at the beginning of the period),” BlueRock reported. “This stock includes the 20.7 carat diamond that was announced on 27 September 2019.”

So far this year, the Company has sold approximately 10 stones with a value per carat in excess of US$1,000, slightly over half of which were in Q3.

BlueRock Executive Chairman, Mike Houston, said, “I am extremely pleased with the continued success at Kareevlei. We reached our monthly production target of 40,000 tonnes earlier than planned and achieved record levels of production for the quarter. The increased production, coupled with the increase in grade to above the lower end of expectations, as well as the continued quality of our diamonds leading to consistently high values per carat, has led to record levels of income and lowered unit costs of production. I remain confident that we will meet our target of profitability in the second half of 2019.”

The Company said that having achieved its near-term targets, it  is now looking at ways of increasing production further and preparing for the rainy season, which traditionally impacts the first quarter of each year.