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BlueRock Diamonds Share Price Jumps On Record Quarter Production

Sam Boughedda trader
Updated 12 Oct 2021

Shares of diamond producer BlueRock Diamonds (LON: BRD) are rallying Tuesday after it reported a record quarter for carats produced.

The AIM-quoted firm produced 7,682 carats during the third quarter, representing a 38% rise from the 5,577 produced in Q3 2020.

The number of carats sold also significantly rose from 3,803 last year to 6,887 in Q3 this year, an 81% increase. 

The 68% rise in the average price per carat, which was $554 from $330 the previous year, will have encouraged the company further. 

BlueRock Executive Chairman, Mike Houston, said: With 7,682 carats produced, this has been another record quarter driven by quality high-grade kimberlite being mined and the new crushing plant providing a consistent feed to the old three-pan processing plant. It augurs well for the transition to the new four-pan plant, which will be completed during October.  

“The grade and quality of diamonds has been very encouraging and as previously reported we discovered four high-value diamonds during the quarter sold for over $1 million, including a record 58.6 carat stone. The size of this stone at more than double our previous largest stone supports the potential of the Kareevlei resource.”

The company added there is a growing interest in Kareevlei diamonds which was reflected in the average price of $554 per carat. 

The Kareevlei mine, in the Kimberley region in South Africa, is owned and operated by BlueRock. 

The update saw BlueRock shares open up the session 9.68% higher at 51p, where they are currently trading. 

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.