BlueRock Diamonds shares fall due to production constraints and resource depletion

By Michael Susan

Shares of BlueRock Diamonds PLC fell on Wednesday after the company lowered its forecast for 2022 due to abnormal rainfall which affected production at the Kareevlei diamond mine in South Africa’s Kimberley region and the increased costs, and said it had exhausted its cash resources.

Shares at 0949 GMT were down 6.0 pence, or 21%, at 22.0 pence.

The company – which owns the Kareevlei diamond mine – said it currently expects 2022 revenue to be between $14m and $18m, down from a previously forecast range of $16m to $19m. .

The carat production forecast for the year has also been revised down 30% to between 28,000 and 33,000.

BlueRock added that its cash resources have been depleted amid a period of heavy investment in mining development and that it is talking with a major shareholder and debt financing providers to receive support throughout the period.

The company said Kareevlei has had a significant impact on both mining development and processing, as it experienced nearly double its normal annual rainfall in the first five months of 2022, with May rains higher. three times higher than the long-term average.

He added, however, that the forecast for 2023 remains unchanged.

Write to Michael Susin at [email protected]

Previous Accelerating Domestic Labor Migration - BBJ
Next Kansas Sports Betting - Legal Sportsbooks in Kansas 2022