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BlueRock diamond production seen at lower end of guidance
19th Nov 2021 15:53
(Sharecast News) - BlueRock Diamonds warned on Friday that full-year production was likely to be at the lower end of its guidance range following the shutdown of operations at its Kareevlei mine in the Kimberley region of South Africa.
The company announced on Monday that the mine had been shut down following a visit by South Africa's Department of Mineral Resources and Energy (the DMRE), due to a deemed safety breach.
Although commissioning and processing restarted at the new plant on Thursday, the old plant has been closed.
BlueRock said it's now likely that production for the year to the end of December will be at the bottom end of guidance of between 22,000 and 26,000 carats.
"The suspension has impacted near term cashflow expectations, exacerbated by the fact that there is no planned diamond tender in Kimberley in December 2021," it said. "The company is assessing how best to meet its working capital needs over this period including the potential to finance December 2021 production through its existing relationship with Delgatto Diamond Finance LLP subject to progressing certain administrative matters."
BlueRock said it remains in talks with the DMRE in relation to the issues raised regarding the mining activities that remain suspended and "hopes to resolve these in the near future".
At 1600 GMT, the shares were down 6.3% at 37p.
The company announced on Monday that the mine had been shut down following a visit by South Africa's Department of Mineral Resources and Energy (the DMRE), due to a deemed safety breach.
Although commissioning and processing restarted at the new plant on Thursday, the old plant has been closed.
BlueRock said it's now likely that production for the year to the end of December will be at the bottom end of guidance of between 22,000 and 26,000 carats.
"The suspension has impacted near term cashflow expectations, exacerbated by the fact that there is no planned diamond tender in Kimberley in December 2021," it said. "The company is assessing how best to meet its working capital needs over this period including the potential to finance December 2021 production through its existing relationship with Delgatto Diamond Finance LLP subject to progressing certain administrative matters."
BlueRock said it remains in talks with the DMRE in relation to the issues raised regarding the mining activities that remain suspended and "hopes to resolve these in the near future".
At 1600 GMT, the shares were down 6.3% at 37p.