Skip to content

BlueRock Diamonds (BRD) Shares Jump After Discovery of 58.6 Carat Stone

Sam Boughedda trader
Updated 16 Aug 2021

Practice Stock Trading Your Capital Is At Risk
Bluerock Diamonds

BlueRock Diamonds' (LON: BRD) share price is rallying on Monday after the company announced the discovery of a 58.6-carat diamond.

The discovery was made at the Kareevlei Diamond Mine in the Kimberley region of South Africa.

It follows on from the announcement last week of a 21.6-carat diamond discovery made at the same mine owned by BlueRock.

Mike Houston, Executive Chairman of BlueRock, said: “I am delighted to inform shareholders that we have recovered a 58.6 carat stone a week after the recovery of a 21.6 carat stone.

“We expect that the sales value of the 58.6 carat stone will be significant as it is a “D” colour makeable stone but has spotted black sulphide intrusions with the final value dependent upon the buyer's confidence of what cut stones can be recovered. The diamond will be sold in the August tender.

“This is a very important discovery for BlueRock as it supports the “size frequency distribution charts” that indicate our pipes will deliver large high value diamonds along with the highly sought after “run of mine” parcel of diamonds which have secured values of over US$400 per carat in 2021.”

The company expects to announce the value of the two stones following the end of month August tender.

BlueRock's share price is currently trading 14.81% above Friday's close at 46.6p. However, the 21.6 carat stone announcement on the 9th of August saw its shares close flat for the day.

Should you invest in BlueRock Diamonds shares?

BlueRock Diamonds shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are BRD shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.