BlueRock concludes diamond sale
Aim-listed BlueRock Diamonds, which operates the Kareevlei diamond mine, near Kimberley, in South Africa, has announced the private sale of 2 400 ct at an average price of $290/ct for a total of $700 000.
"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.
"The parcel sold did not contain any notable high-value diamonds and, therefore, the price achieved is about 15% below what we would have expected to achieve for this parcel pre the Covid-19 pandemic. At a sale price of an average of $290/ct, which we hope represents the bottom of the market, the group is cash flow positive,” comments BlueRock executive chairperson Mike Houston.
He notes that, following receipt of the sale proceeds, the group’s cash balance will be about £1.1-million and there is a further £268 000 to be received in August from the Teichmann Group in accordance with the terms of a placing in February.
“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, in Antwerp as per our arrangement announced in May.
"We now anticipate that the first sale of Kareevlei diamonds in Antwerp will be in September, with June to August production prefinanced monthly at 70% of value by the Delgatto Diamond Finance Fund,” Houston notes.
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