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BlueRock Diamonds PLC - diamond producer focused on South Africa - Says its mining development from the Kareevlei diamond mine in Kimberley, South Africa fell 36%, or by 400,000 tonnes, as compared to the budget for April and May. The company says it was due to heavy rainfall during the first five months of 2022, affecting both mining development and processing against expectations.
The rain limited the mine's access to quality kimberlite and necessitated the use of lower grade and more difficult to handle clay content in Kareevlei's processing operations.
The delayed roll-out of the company's mining development plan will also affect production output for the second and third quarters of 2022.
BlueRock Executive Chairman Mike Houston says: ‘As we finally move into drier weather, I am pleased to report operations are improving rapidly, which will enable us to take advantage of the buoyant market, with prices achieved for BlueRock's unique stones averaging over C$600 per carat during 2022 - marking an uplift of 29% versus 2021 prices. ’
Looking ahead, the company says its guidance for 2023 remains unchanged despite its reduced mining activity during the last few months. In addition, BlueRock's cash resources are depleted due to lower diamond output and increased costs, and has entered discussions with a major shareholder and providers of debt finance for support.
Current stock price: 20.60 pence, down 26% on Wednesday afternoon
12-month-change: down 53%
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