OTHER

BlueRock eyes stronger diamond prices in 2021

BlueRock Diamonds is hopeful of a better 2021 following three precious gem discoveries.

This article is 5 years old. Images might not display.

The diamond miner has also sold its other recent find, a 12.8 carat diamond recovered earlier this month, for US$76,000, or $6,000 per carat, to an undisclosed buyer, it said.
 
The sale price was "well above the company's $50,000 base-line estimate", London broker, SP Angel, noted. 
 
"The recovery of more, larger diamonds so soon after the 12.8ct stone indicates the [Kareevlei] mine is in a higher-value phase," the broker said.
 
The average engagement ring weight in the UK is 0.6 carats.
 
BlueRock's average selling price plummeted to about $290 per carat in 2020, which is at the bottom end of its guidance and blamed on the reduced incidence of larger stones at its flagship project, and the impact of COVID-19.
 
The news comes after a rocky year for the global diamond industry, which faced the twin perils of supply chain interruptions due to the COVID-19 lockdown and depressed demand for precious gems. 
 
BlueRock Diamonds executive chairman Mike Houston said he was "hopeful" the recent discoveries marked the start of a return to mining higher quality diamonds at Kareevlei. 
 
Recent diamond sorts indicated an increased incidence of diamonds of 3 carats, which was also a significant driver of prices, he said. 
 
"We expect prices to recover in 2021 to reflect this change."
 
Management plans to double the mining and throughput rate at the mine, in the Northern Cape province of South Africa, in 2021 which ranks among the top 10 globally for average value per carat.
 
Shares in BlueRock Diamonds have more than halved in the past year, and are currently trading at 47.5p, valuing the company at £4.3 million. 
 

Expert-led Insights reports and Analytics tools built on robust data, rigorous analysis and expert commentary covering mining Risk, Projects, ESG, Leadership, and Investor Sentiment.

Expert-led Insights reports and Analytics tools built on robust data, rigorous analysis and expert commentary covering mining Risk, Projects, ESG, Leadership, and Investor Sentiment.

editions

Investor Sentiment Insights 2026

Discover what investors have planned for mining in 2026 in our industry-leading survey

editions

World Risk Insights 2025 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 120 jurisdictions globally, assessed across six risk categories and an industrywide survey.

editions

ESG Index 2025: Benchmarking the Future of Sustainable Mining

The ESG Index provides an in-depth evaluation of the ESG performance of 60+ of the world’s largest mining companies. It assesses companies across 10 weighted indicators within 6 essential ESG pillars.

editions

Leadership Insights 2025

Leadership Insights reveals key trends in priority mining issues through interviews with 15+ top mining company executives and an industrywide survey.