BlueRock production levels fall after five-week shutdown

AIM-listed diamond producer BlueRock recorded "good" production levels over the second quarter of the year, the company argued on Friday.

Over the latest three-month stretch, BlueRock processed 34,247 tonnes, a 16.85% decrease on the previous quarter despite roughly five weeks of downtime during the period due to bad weather and a crusher fault at its Kareevlei Diamond Mine in the Kimberley region of South Africa.

The company sold 875.31 carats, a 44% drop from the first quarter, with average revenue per carat of $305.34, marking a significant decline from the prior quarter's $378 figure, despite which management said its performance reinforced the company's position as one of the "top-ten highest value per carat diamond mines in the world".

On a more upbeat note, even when including the five-week shutdown, first half production increased 81% year-on-year to 73,028 tonnes.

BlueRock also issued production guidance of 150,000 to 175,000 tonnes for the second half of its trading year, assuming no further major production halts.

For the full fiscal year 2018, the outfit said it was targeting an average grade of 3.5-4.5cpht, up from 2.45 cpht in fiscal year 2017.

Chief executive, Adam Waugh, said, "Thanks to our experienced team on the ground, we have had a successful quarter, continuing to produce exceptional quality diamonds from our Kareevlei project, despite five weeks of downtime due to bad weather and a fault in our crushing circuit; 34,247 tonnes were processed during the quarter with year-on-year H1 2018 production up 81%."

As of 1240 BST, BlueRock shares had grown 2.17% to 1.18p.