BlueRock upbeat on pricing as it recovers two 'exceptional' diamonds

BlueRock Diamonds announced the recovery of two gem-quality exceptional stones at its Kareevlei Diamond Mine on Monday.

The AIM-traded diamond producer, which owns and operates the mine in the Kimberley region of South Africa, said the two stones were of 14.8 carats and 8.7 carats.

“I am very pleased to announce the recovery of two high value gem quality diamonds from the Kareevlei Diamond Mine and the sale of the 12.8 carat diamond, the recovery of which was announced on 4 December, for $76,000, or $6,000 per carat,” said executive chairman Mike Houston.

He said the reduced incidence of larger stones in 2020, and the ongoing impact of Covid-19, had reduced the company’s average selling price for 2020 to around $290, which was at the bottom end of its guidance for 2020.

That compared to its estimate of the 2019 price per carat, excluding the higher-value stones of $330, making for a 12% decrease.

“We are hopeful that the discovery of three high value stones within a month marks the start of a return to mining higher value diamonds.,” Houston said.

“Promisingly, our more recent diamond sorts at Kareevlei indicate an increased incidence of diamonds of three carats and above, which is another significant driver of pricing.

“Accordingly, we expect prices to recover in 2021 to reflect this change.”

At 0803 GMT, shares in BlueRock Diamonds were up 0.84% at 47.9p.