BlueRock Diamonds (LSE:BRD)
BlueRock Diamonds (LSE:BRD) is an AIM-listed diamond mining company, that operates the Kareevli Diamond Mine in the prolific Kimberley region of South Africa.
Despite disruption caused by the Covid pandemic, BlueRock has achieved some recent significant milestones. On 19 October, the company announced the sale of another large diamond (2,900 carats) for $870,165. This followed a highly encouraging production update on 13 October, when BlueRock was able to reveal record production volumes and grades.
At its current 57p a share, BlueRock is valued at £5million. With just over £2.1million cash on its balance sheet and an ambitious growth plan lined up, this company looks primed for growth as we head into 2021.
Download BlueRock Diamond’s presentation please CLICK HERE.
In this exclusive webinar, BlueRock’s CEO Michael Houston and CFO David Facey speak with Ben Turney about the progress the company has made over 2020 and what shareholders can expect over the coming 18 months.
Central to BlueRock’s goals is its goal to construct a new mining plant that is expected to deliver 1 million tonnes of production, yielding about 45,000 carats of diamond sales a year. With an anticipated cost base of $200 per carat, if Houston and Facey can deliver on their objectives this will set BlueRock on course to become profitable at the Plc level.
This is quite a turnaround for a business that was struggling before Houston took over towards the end of 2018 and the market has yet to respond to the potential on offer here.
In the webinar Houston and Facey present their vision for the company and then field questions submitted from shareholders. In a rigorous Q&A they describe in more detail:
- How the company will deliver its primary 1million tonne operational target in such a relatively short period of time
- Their plans for increasing and upgrading the resource estimate at Kareevli
- The strength of BlueRock’s balance sheet following the recent £1.25million placing and other funding facilities available to the company
- The steps the company has taken to secure maximum operational efficiency and that $200 per carat cost base
- How the business is now well positioned with a diversified sales strategy
- How BlueRock will construct and then launch the new mine processing facility, managing risk and ensuring continuity of operations
With all that is happening at BlueRock it seems somewhat surprising that the company’s stock has not regain the ground it lost in the immediate sell-off when the coronavirus first began. However, if Houston and Facey are able to continue their track record of delivering on their goal, then 2021 could be a very exciting year for shareholders.