Bluerock Diamonds confident of profitability after record Q3 production

(Sharecast News) - Bluerock Diamonds on Wednesday reported that third quarter production reached record levels, leaving the company confident of meeting profitability targets for the second half of the year.
The AIM traded company, which owns and operates the Kareevlei Diamond Mine in the Kimberley region of South Africa, achieved production of 92,500 tonnes, 45% higher than in last year's third quarter.

This increase in production came even as Bluerock suspended operations for 19 days in July due to the installation of a new crusher.

The average grade of the company's diamonds also improved from 3.13 carats per hundred tonnes to 4.30 cpht.

The average price achieved of $432 per carat on sales of 4,139 carats, compared with 1,834 carats sold at $341 in the same period in 2018.

Executive chairman Mike Houston said: "The increased production, coupled with the increase in grade to above the lower end of expectations, as well as the continued quality of our diamonds leading to consistently high values per carat, has led to record levels of income and lowered unit costs of production."

"I remain confident that we will meet our target of profitability in the second half of 2019."

Bluerock said it now expected full year production of between 310,000 and 335,000, the top range of previous guidance, while value per carat is anticipated to be between $400 and $450, well ahead of previous expectations of $340.

Analysts from SP Angel said: "We are hopeful that the operations are at long last starting to realise their economic potential and we expect to see the mine report some very interesting gem-quality stones over the next few years based on the recovery of ~100 >20ct stones so far this year."

Bluerock Diamonds shares were up 3.06% at 131.40p at 1346 BST.