(Alliance News) - BlueRock Diamonds PLC saw its share price rocket by over 40% on Monday after it released positive results from the final quarter, and maintained guidance for the year ahead.
The Reading, England-based diamond producer reported revenue more than doubled year-on-year, up to USD10.8 million for 2021 from USD4.8 million in 2020. This meets the previous guidance range of USD8.8 million to USD11.6 million.
BlueRock's share price rose by 43% to 42.33 pence in London on Monday afternoon.
Total carats produced stood at 23,497, up 53% year-on-year from 15,371. Total tonnes processed was up 28% to 516,000, from 402,000 in 2020. The value per carat came in higher than the upper estimate of USD440 at USD470, and the grade also surpassed the upper estimate of 4.3 carats per hundred tonnes, coming in at 4.55.
The good news follows a setback in December, where a Covid outbreak in its Kareevlei mine in South Africa forced the company to halt operations. Despite this, the diamond producer still managed to produce 44% more carats over the quarter at 6,866, up from 4,781 in 2020's final quarter. Revenue in the final quarter also increased by 67% to USD3.0 million, from USD1.8 million the previous year.
Executive Chair Mike Houston said: "While we faced many challenges during 2021, we have seen production levels and the grade increase significantly and with that a 41% increase in our carats sold. The market has remained buoyant throughout the year with prices returning to levels above those of 2019 resulting in revenue more than doubling in 2021 compared with 2020."
Looking ahead to 2022, BlueRock expects first-quarter production to be "materially higher" than 2021 which saw 86,005 tonnes sorted, having the capacity to ramp up production when permitted by the weather, as well as existing crushed ore inventory.
It maintained revenue guidance for 2022, between a range of USD16.0 million to USD17.2 million, as the market remains positive, with diamond supply tight and demand high.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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