SP Angel14 Jan 2019 11:35
BlueRock Diamonds* (LON:BRD) 0.335p, Mkt Cap £1.5m – 2018 review highlights increased diamond sales
BlueRock Diamonds reports that, following sales of 1,533 carats during q4 2018 it sold a total of 5,805 carats of diamonds during FY 2018, representing a 71% increase on the 3,385 carats sold during 2017.
The result reflects production improvements in both the annual tonnage, which increased by 24% to 189,990 tonnes, and grade, which rose 34% to 3.28 carats per hundred tonnes (cpht) and surpassed the company’s revised 3.0cpht guidance.
The average value of US$332 per carat during 2018 was, however, approximately 8% lower than the US$362/carat received during 2017 with an average of US$316/ct received on Q4 sales.
Commenting on the results, CEO, Adam Waugh, said that “The results from our second kimberlite pipe, KV1, which came on stream in June last year, and from the undiluted levels of our first kimberlite pipe, KV2, have shown a marked increase in grade, which we expect to continue into 2019”.
Mr. Waugh went on to express the view that the plans to move to 365 day operations in February, in conjunction with an increasing grade profile “makes the outlook for 2019 very encouraging”.
Conclusion: A broadly improving trend of grade during 2018, and plans to increase throughput by implementing 365 day working provide the company with encouragement of a sustainable operational improvement. We hope to see an improvement in values per carat as mining accesses the higher grades at depth in the KV2 pipe and in the KV1 kimberlite.
*SP Angel acts as Nomad & Broker to BlueRock Diamonds
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