Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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With half the planet seemingly dealing with the Omicron variant. Don’t think the news was that bad. Early Christmas for some but those on the Diamond producing end continue their work. Looking forward to a much improved 2022.
Podcast interview with Doc Holiday
https://total-market-solutions.com/2021/12/guest-interview-vol-13-doc-holiday/
Got this instinct that the year end results will be better than expected. As for next year - barring another lockdown for whatever reason, I expect to see that the board’S expectations exceeded.
Run-rate now 40-45k carats, sales price 450$, 50% margin->2022 9m$ operational profit. The outlook is fantastic with this price/production. Hopefully BRD can deliver in next quarters and stabilize business and be able to pay-off the convertible loan rather quick.
Three Gem Quality Diamonds Sold for USD180,000
I hope that the present BOD are better informed than Bluerock’s own Home Page. In spite of the announcement that UBS have acquired a 5%+ shareholding, the home page has not been updated to show this substantial shareholding. This shows me that there is either a breakdown in communications between the company and its PR company or a simple lack of respect for their smaller shareholders. The other worrying point as mentioned by other posters is that the company is having to look very carefully at their present financial position even though they they only lost 5 days worth of production. Things must be vey tight if 5 days lost production can cause such a problem.
Nearly 6% bought last Thursday
Your are right about having profit in the end of the year with 22,000 carats but "working capital" not much.
If the figure of 22,000 carats for the year is confirmed it's hard to see how we could avoid being in profit.
One has to wonder whether the working capital situation was in a bad way before the 5 day shutdown. The upgrade project and in fact the whole way things are being managed seems to have become one big cash soak. One can only hope for several 'large' stones to be recovered before the end of the year. Afterall, that's what it's all about.
It will be hard to show some profits whe the processing plant was shutdown for 5 days and the board makes this statement : "We are now looking at how best to manage the working capital impact of the lost production." What kind of managament runs this company? FFS....
Some good recent posts. I hope the BOD take note.
If they do the right thing, they will do well and we should do alright.
If they don't, they should do well and we will be f****d.
They have the choice of either proving the outlaw Graham Wales right or making a success of the company.
I'm still looking forward to seeing end-of-year figures very soon which should show we are now well into profit.
By the sound of it only the mining operation has paused, while the actual processing of material for diamonds is still continuing using the stockpile of material already mined.
Hopefully if they can deal with the H&S issue fairly quickly it should mean there is little or no impact on diamond production for the year.
Agree that Management has not done their job here. But regarding interest rate payment it is a fixed cost on the Teichmann loan, overall almost 1m£ to be paid at the end before retirement or it get converted to shares. The Delgatto loan will hopefully just be used now and repaid quickly. The Teichmann loan is for 3 years thus BRD got some time to build cash buffer before repayment. Only if SP goes above 60P they can convert to shares. BRD requires much more patience than I initially though but hopefully they can resume operations soon again.
Mike Houston has signed an agreement with Teichmann Group for £1.6m loan note subscription and another few hundred thousand pound still to come from placing. They can request Teichmann Group to revoke both the instalment basis agreement and instead ask for that money at once. Also, Teichmann should understand the financial difficulty that BlueRock is undergoing.
It is getting hard to understand how that Mike Houston and David Facey (Finance Director, the one who is always looking as if he is about to go for sleep in all his interview) is dealing with the company financial matters. They should both give RESIGNATION immediately, one for bringing the mine into closure by not following health and safety rules and the other for not implementing prudent financial planning causing financial distress in the company.
They have not even become successful in fully repaying few hundred thousand pounds loan (hefty interest charged) borrowed from former directors despite numerous placing and millions of pounds of earnings. On top of that, they have recently signed loan agreement with Teichmann at 14.5% interest per annum. Now, they want to use Delgatto to pay another 15% interest per annum. If they are going to use Delgatto, they will end up continuing paying interest for many years to come considering their working patterns.
Is that what David Facey is advising as Finance Director? Bull****!! He has been in this company for too long now and it's time for his replacement so that new one can come up with better ideas and initiatives to improve BlueRock financially. Otherwise, he will continue advising and supporting lousy financial decision with the help of Mike Houston and deplete the valuation of the company. So, they both should give resignation as they are no fit to run BlueRock Diamonds anymore.
I was led to believe that there were never any diamond auctions in Kimberley in December. Which leads to another question: how can the latest update still state that they are on course to hit 22,000 carats this year when they cannot sell any diamonds in December?
Does anyone have an insight in how the company sells its diamonds?
Bluerock stating they will fall short on revenue since there is no tender in Kimberley in December looks dodgy to me. Why sale locally in Kimberley when you can ship your product to worldwide auctions in a DHL or FEDEX box? We are not mining coal, or iron ore and in the plus side diamonds are having the best run-in years. It must be plenty tenders in other countries! Unfortunately, it looks like pure negligence from the management, trying to dry the company from its revenue for “obscure” intentions.
Mike Houston should no doubt give immediate Resignation. Despite earning millions of pound through sales of diamonds in the past months and more money from placing, he is still creating doubts about the going concern of the company saying it could be hand to mouth to meet the working capital because of no tender on Dec.
Teichmann still need to pay Bluerock of the placing money. They can asked them to pay early considering the situation of the company plus Teichmann should know inside out of the company business being a contractor by now.
The best option for BlueRock is to sell the mine. The upgrade is almost done. I believe Karveeli mine will receive many multiple times offer the current valuation of the company. That is the only way shareholders values can be created. If they continue to mine, the operation will be only to pay their salary and for continuous placing eroding the value of our investment.
Now sold out. Today's rns may not be end of world but I can see convertable loan's from largest shareholder being utilised to further tighten grip in run up to.lowball offer to take private. Might be wrong and it all goes grand for those holding, no longer happy with risk on this.
I sold out on the 15th given this nearly two years and with a placing looming its a good time to bow out
BlueRock Diamonds PLC, the AIM listed diamond producer, announces an update with regards to operations at its Kareevlei Diamond Mine ('Kareevlei') in the Kimberley region of South Africa.
Further to the announcement dated 15 November 2021 and following discussions with the Department of Mineral Resources and Energy (the 'DMRE'), commissioning and processing at the new plant recommenced yesterday (18 November 2021), the old plant has been closed and the transfer and fitting of two pans from the old plant to Line 2 on the new plant has commenced. The crushing circuit and Line 1 of the new plant were operating at near design capacity, and it is expected that both lines of the new plant will be operational within the next two weeks. As part of the commissioning and a build up to full production, the Company is utilising ore stocks that have been built up pre the rainy season.
Due to the availability of run of mine ore, processing can continue notwithstanding the current suspension of mining activities and the shutdown is not currently expected to alter the guidance for the year ended 31 December 2021 of between 22,000 and 26,000 carats produced, although this is likely to be at the lower end of the guidance. The suspension has impacted near term cashflow expectations, exacerbated by the fact that there is no planned diamond tender in Kimberley in December 2021. The Company is assessing how best to meet its working capital needs over this period including the potential to finance December 2021 production through its existing relationship with Delgatto Diamond Finance LLP subject to progressing certain administrative matters.
The Company remains in discussion with the DMRE in relation to the issues raised regarding BlueRock's mining activities that remain suspended and hopes to resolve these in the near future. Further updates will be provided in due course.