BlueRock Diamonds ups guidance after upgrading Kareevlei processing plant

South Africa-focused mining company BlueRock Diamonds expects to treat an extra 120,000 tonnes of rock in 2018, with its upgraded plant in the region leading the firm to up its production guidance in comparison to the prior year.

BlueRock, which owns and operates the Kareevlei Diamond Mine in the Kimberley region of South Africa, said that now that it had been operating the upgraded facility for a number of months, it was expecting to treat in excess of 275,000 tonnes in 2018, well above the 153,147 tonnes processed in 2017.

BlueRock forecast an average grade of around 3.5 cpht and 4.5 cpht during 2018, meaning total production for the year would hit between 9,500-12,500 carats, a vast improvement on 2017's figure of 3,728 carats.

The firm, which operates on an effective 11-month production year due to an extended Christmas break, said that is $362 price per carat acheived in its previous trading year would be at the "the lower end of guidance for 2018."

"Production volumes to date are in line with management expectations, taking into account the seasonality caused by the extended Christmas break and the rainy season in the first quarter of the year," the firm said on Thursday.

"Rainfall in January and February has led to disruption to production over a number of days. However, this has not been to the same extent as the exceptional level of rain experienced in 2017 and has not impacted upon the full year guidance provided above," it concluded.

As of 1050 GMT, shares had picked up 3.78% to 1.87p.