(Alliance News) - BlueRock Diamonds PLC on Tuesday said it reached profitability for the first time during the second half of 2019.
Shares were 5.4% higher on Tuesday in London at 117.55 pence each.
London-based BlueRock, which mines from the Kareevlei mine in the Kimberley region of South Africa, delivered revenue of GBP4.1 million in 2019, nearly treble the year before.
Carats sold in the year more than doubled to 12,657, and the fourth-quarter figure nearly trebled on the year before to 4,170 carats. The average price for 2019 rose 24% per carat on a year before, with the fourth-quarter figure up 30%.
"I am very pleased with the continued success at Kareevlei, having achieved the aggressive guidance for 2019 and operated profitably for the first time in the second half of 2019. We are proud of this key milestone, which is a testament to the implementation of the revised production strategy brought in by the company's new management team in second-quarter 2019," said BlueRock Executive Chair Mike Houston.
"As stated in earlier announcements, this strategy has focused on stabilising production ahead of maximising the exploitation of the resource. To that end, we are developing plans to effect a further step change increase in production and lower unit costs."
BlueRock said the first quarter of 2020 has been satisfactory so far, and it expects to meet production targets despite seasonal rains. This production will be "significantly ahead" year-on-year.
By George Collard; georgecollard@alliancenews.com
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