BlueRock records operating loss of £1,5 mln

BlueRock Diamonds, which owns the Kareevlei mine in South Africa, has recorded an operating loss of about £1,5 million on turnover of about £1,3 million in the six months ended 30 June 2020 compared with a loss of £471,000 on turnover of approximately £1,4 million in the first half of 2019.
It said the increase in operating loss was caused by the impact of Covid-19 on production and prices; the cost of creating KV Main Pit; and the impact of the heavy rainfall in the first three months of the year.
“The impact of Covid-19 was significant as it stopped production for 50 days and has had and continues to have an ongoing impact on prices,” said BlueRock.
“It is difficult to be exact about the financial impact that this has had but we estimate that the revenue impact to date is approximately £700,000 to £800,000.”
Despite being closed for almost two months as a result of Covid-19, production increased by 37% to 165,000 tonnes compared with the first half of 2019. 
It produced 4,981 carats in the first half of 2020 compared to 4,938 carats, the previous year.
BlueRock recommenced mining in the lower levels and the grade has improved averaging 4.4 cpht since the beginning of July 2020.
Meanwhile, continued expansion plans at Kareevlei, combining KV1 and KV2 to mine more efficiently, increased plant size by 20% to handle one million tonnes per annum, and advanced work to upgrade the
Resource.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished