BlueRock Diamonds PLC - owner and operator of the Kareevlei diamond mine in South Africa's Kimberley region - Reports widened loss of GBP2.7 million for the six months ended June 30 compared to GBP381,027 loss the year before. This results from sharp rise in operating expenses to GBP2.8 million from GBP1.8 million as well as a swing to a GBP1.1 million loss on foreign exchange from a GBP174,203 gain. Revenue dips to GBP1.3 million from GBP1.4 million. BlueRock blames Covid-19 damage to production and prices; the cost of creating the KV Main Pit; and heavy rainfall in the first three months of 2020. Reinstates guidance, which had been suspended in march, though is subject to "significant worsening in the Covid-19 environment". Total volumes for 2020 expected at 348,000 to 444,000 tonnes at between 13,800 and 18,000 carats with value per carat at USD300 to USD350.
Chair Mike Houston: "Our core objective is focused on increasing production in sensible steps to the one million tonnes per annum target while reducing costs through the economies of scale and changes to the power structure. To this end, having acted quickly at the onset of Covid-19 to implement a robust 'reset and rebuild' strategy, we believe that we are in a much stronger position to navigate the 'new norm' in our operations and in the market and build significant value for BlueRock shareholders."
Current stock price: 56.00 pence; down 4.3% on Tuesday
Year-to-date change: down 50%
By Anna Farley; annafarley@alliancenews.com
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