TIDMBRD
RNS Number : 5482E
BlueRock Diamonds PLC
28 October 2022
BlueRock Diamonds PLC / AIM: BRD / Sector: Natural Resources
28 October 2022
BlueRock Diamonds PLC ('BlueRock' or the 'Company')
Q3 2022 Production Update
BlueRock Diamonds PLC, the AIM listed diamond producer, which
owns and operates the Kareevlei Diamond Mine ('Kareevlei') in the
Kimberley region of South Africa, announces its production update
for the 3 months to 30 September 2022 ('Q3 2022') along with an
update on its GBP462,500 Convertible Loan Note and details of
changes to production guidance for the years ending 31 December
2022 and 2023.
Overview
Q3 2022 Q3 2021 % Variation
---------------------- -------- -------- ------------
Tonnes Produced 195,848 159,867 +22.5
---------------------- -------- -------- ------------
Grade cpht 2.63 4.81 -45.3
---------------------- -------- -------- ------------
Carats produced 5,145 7,682 -33.0
---------------------- -------- -------- ------------
Carats sold 5,475 6,887 -20.5
---------------------- -------- -------- ------------
Avg. price per carat
USD 513 554 -7.4
BlueRock CEO, Victor Dingle, said, "In order to adhere to the
mining plan there was a significant increase in activity related to
stripping, waste mined and movement of stockpiles. This should
improve the quality of the ore available to the plant in Q4. Plant
production increased 40% over Q2, however the performance of the
plant remains below expectations and rated throughput. Action is
being taken to address this and overcome the bottlenecks and
blockages. From October, only KV2 is being mined in order to
assess, at a high level, the current mining plan, the quality of
ore, and the performance of the plant. This will continue for at
least two months while waste and stockpiles are moved to open
further areas for stripping and mining."
Guidance
The Company has revised its guidance for 2022 and 2023 to
reflect the outcome of a high-level review undertaken of the
production and mining plan and continued uncertainty over
production and grade for the balance of the current year (where
only KV2 will now be mined):
2022 revised Previous 2023 revised Previous 2021 actual
guidance 2022 guidance guidance 2023 guidance
Tonnes processed
('000) 600-700 620-670 900-1,000 875-970 516
------------- --------------- ------------- --------------- ------------
20,000 to 20,000 to 35,000 to 35,000
Carats produced 22,000 24,000 41,000 to 41,000 23,497
------------- --------------- ------------- --------------- ------------
3.25 to 4.0 to
Grade 2.96 to 3.2 3.5 3.7 to 4.1 4.3 4.55
------------- --------------- ------------- --------------- ------------
Value per carat
(USD) 500 to 570 500 to 600 500 500 470
------------- --------------- ------------- --------------- ------------
10.0 to 17.5 to
Revenue (USDm) 10 to 12.5 14.4 17.5 to 20.5 20.5 10.8
------------- --------------- ------------- --------------- ------------
Convertible Loan Note
Further to the announcement of 14 October 2022 in respect of its
GBP462,500 Convertible Loan Note ("CLN"), which was due to be
repaid on 16 October 2022, negotiations are continuing on a revised
repayment arrangement, details of which will be announced once
finalised.
BlueRock CEO, Victor Dingle, said, "The guidance was revised
based on the current activity at the mine, the high-level review of
the mining plan and the impact on short-term planned activities at
KV2 only. In order to overcome challenges with processing during
the wet season, modifications to the plant, which may require
capital expenditure, are being investigated. The plan is to ensure
that the plant operates at rated capacity as soon as possible, and
that it is not significantly affected by wet material. As this is a
work in progress a final assessment is expected in Q1 2023.
"The ZAR 30 million facility from Teichmann South Africa has
been fully drawn down to fund activities at the Kareevlei mine
although not all payments have yet been received and discussions
are in progress to resolve this shortfall in funds at the Kareevlei
level.
"The board continues to progress the appointment of additional
non-executive directors to strengthen the board and comply with the
board composition as per the terms of the Relationship Agreement
announced on 15 August 2022 as part of the recent financing."
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK domestic law by virtue of the European Union (Withdrawal) Act
2018 ('MAR'). Upon the publication of this announcement via
Regulatory Information Service ('RIS'), this inside information is
now considered to be in the public domain.
Large stones recovered in 2022
Date sold 2022 Carats Value Value per carat
USD000 USD000
September 10.22 123 12
------- -------- ----------------
August 11.62 84 7.2
------- -------- ----------------
10.02 81 8.1
------- -------- ----------------
9.04 76 8.4
------- -------- ----------------
6.77 52 7.6
------- -------- ----------------
6.88 52 7.5
------- -------- ----------------
10.35 50 4.8
------- -------- ----------------
July 5.97 55 9
------- -------- ----------------
7.4 67 9
------- -------- ----------------
March 19.3 116 6
------- -------- ----------------
12.7 128 10
------- -------- ----------------
8.7 104 12
------- -------- ----------------
6.6 63 9.5
------- -------- ----------------
February 11.9 211 17.6
------- -------- ----------------
8.3 96 8.3
------- -------- ----------------
13.6 78 5.8
------- -------- ----------------
7.5 75 10
------- -------- ----------------
January 6.8 63 9.3
------- -------- ----------------
Note: It is Company policy to announce all stones sold with a
value of in excess of USD50k.
**ENDS**
For further information, please visit BlueRock's website
www.bluerockdiamonds.co.uk or contact:
BlueRock Diamonds
Victor Dingle, CEO v.dingle@bluerock.co.uk
SP Angel (NOMAD and Broker)
Stuart Gledhill / Caroline Rowe Tel: +44 (0)20 3470 0470
----------------------------------
St Brides Partners Ltd (Financial
PR) bluerock@stbridespartners.co.uk
Isabel de Salis / Charlotte Page
----------------------------------
Notes to editors:
BlueRock Diamonds is an AIM-listed diamond producer which
operates the Kareevlei Diamond Mine near Kimberley in South Africa
which produces diamonds of exceptional quality and ranks in the top
ten in the world in terms of average value per carat. The Kareevlei
licence area covers 3,000 hectares and hosts five known
diamondiferous kimberlite pipes with a combined inferred resource
of 10.4 million tonnes / 516,200 carats (February 2021); based on
its planned production of 1 million tonnes per annum, this provides
a minimum 10-year life of mine.
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END
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