BlueRock Diamonds completes $700k diamond sale

BlueRock Diamonds, a diamond producer that owns and operates the Kareevlei diamond mine in South Africa, has announced the private sale of 2,400 carats.

The carats were sold at an average price of $290 (£229) per carat for a total of $700,000 (£552,000).

According to the producer, the sale did not contain any notable high value diamonds, and therefore the price achieved was approximately 15% below what it “would have expected to achieve for this parcel pre the Covid-19 pandemic”.  

Following receipt of the sale proceeds, the group’s cash balance will be around £1.1m. A further £268,000 is set to be received in August 2020 from the Teichmann Group, in accordance with the terms of a placing in February 2020. 

BlueRock executive chairman, Mike Houston, said: “This sale at a time when the traditional sales channels for diamonds remain closed and at a price which we estimate to be at current market value for that particular parcel of diamonds is an excellent result in a highly uncertain market.  

“At a sale price of an average of $290 per carat, which we hope represents the bottom of the market, the group is cash flow positive.”

He added: “This sale significantly reduces the risks of operating in the Covid-19 environment. It remains our plan to sell our future production through Bonas-Couzyn N.V, in Antwerp as per our arrangement announced on 13 May 2020.  

“We now anticipate that the first sale of Kareevlei diamonds in Antwerp will be in September with June to August production pre financed monthly at 70% of value by Delgatto Diamond Finance Fund LP in accordance with our non-binding letter of intent.”