8th Oct 2018 12:59
LONDON (Alliance News) - Shares in BlueRock Diamonds PLC dropped on Monday as it lowered its production guidance for 2018 slightly despite reporting a rise in production for the third quarter.
Shares in the AIM-listed diamond miner fell 18% to 0.68 pence on Monday.
BlueRock reported that its Kareevlei diamond mine produced 63,621 tonnes of kimberlite in the three months to the end of September, up from 63,163 tonnes for the same period a year before and from 34,247 tonnes in the second quarter of this year.
Year-to-date production was 133,050 tonnes, up 28% from 103,506 tonnes the prior year. However, due to continued issues with the reliability of the processing plant, BlueRock revised down its production guidance for 2018 to 200,000 tonnes from 220,000 tonnes.
BlueRock produced 1,834 diamond carats, with an average grade of 3.13 carats per hundred tonnes, and value per carat at USD341, up from 1,275 carats the year before.
The company is currently conducting a technical review, with initial findings showing that production targets and further growth have been hobbled by limited flexibility in the mining operation, plant capacity constraints, and unreliable plant equipment.
BlueRock said it has decided to invest in expanding the mining operation, plant and personnel to increase the capacity and efficiency of operations. It said it planning to increase production capacity significantly in 2019, subject to further funding.
"Our increased production in the quarter and in 2018 is encouraging however we are not yet where we would like to be. Operations are moving into an exciting phase and the knowledge built up at Kareevlei will be important in making the correct decisions for the future," said Chief Executive Officer Adam Waugh.
Related Shares:
BRD.L