Bluerock Diamonds Plc (LON:BRD)

Bluerock Diamonds Plc (LON:BRD)


Share Price
0.09 p
Change
-0.005 (-5.26 %)
Market Cap
£1.47 m
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Bluerock Diamonds Plc

BlueRock Diamonds plc, listed on AIM in London, operates the Kareevlei Diamond mine near Kimberley in South Africa, the birthplace of diamond mining. Kareevlei consists of 5 known kimberlite pipes and produce diamonds of exceptional quality and ranks in the top ten in the world in terms of average value per carat.

EPIC: BRD
Market: AIM:BRD
52-week High/Low: 1.280p / 0.082p
Sector: General Mining - Diamonds & Gemstones
Market Cap: £1.47 m
Website: www.bluerockdiamonds.co.uk
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Big Picture – A Deep Dive Examination of Bluerock Diamonds Plc


Bluerock Diamonds Plc Snapshot

Black Economic Empowerment

The South African mining industry is subject to black economic empowerment requirements which arise from the equality provisions of the Constitution and the Mineral and Petroleum Resources Development Act. The DMR has published and implemented the Broad Based Socio-Economic Empowerment Charter, September 2010 (“Mining Charter”) which is applicable to all mining companies operating within South Africa. The most significant element of the Mining Charter is the ownership requirement which stipulates that mines must commit to obtaining 26%. effective ownership by historically disadvantaged South Africans (“HDSAs”) by 2014.

Kareevlei Mining is 74% owned by BlueRock, with the remaining 26% owned by a Kimberley based company, Ghaap Mining (Pty) Limited (“Ghaap Mining”). Ghaap Mining is a South African private company wholly owned by Mr. William Alexander van Wyk who, in terms of South African legislation is considered to qualify as an HDSA.

Kareevlei Project

Kareevlei Mining holds the Mining Right over 3000 hectares in the Northern Cape province of South Africa, approximately 100 kilometres North West of Kimberley.

There are five known diamondiferous kimberlite pipes ranging from <0.5 hectares to 5.6 hectares.  The Inferred Mineral Resource is based on three of the pipes, K1, K2 and K3.  K4 and K5 are the smallest two pipes and have had very limited work carried out.

Mining operations started in 2015 on K2, following an open pit mining plan to mine to a depth of 70m below surface.  Mining at K1, which is 50 metres from K2, is expected to start in 2018 and will be mined in conjunction with K2.


Diamonds

Kareevlei produces very high quality diamonds.  The average value of all diamonds sold from Kareevlei exceeds USD300 per carat placing Kareevlei into the top 10 kimberlite mines in the world (ranked by average value per carat).

 

United Kingdom & South Africa.

The Board

The Board consists of two executive directors and two non executive directors:

Adam Waugh - Chief Executive Officer

Adam Waugh was the Head of Sales and Trading at Brewin Dolphin Plc until 2008 and is currently a Non Executive Director of Atlas Cloud Ltd, a cloud computer service provider and Chairman of the Northern Counties Children's Benevolent Society.

David Facey - Finance Director

David is a Fellow of the Institute of Chartered Accountants of England and Wales and has over 20 years experience in Corporate Finance and Equity Capital Markets. After working at  PwC, David spent 10 years at HSBC Investment Bank, where he specialised in raising funds in the UK for companies all over the world, particularly in the EMEA region.

Throughout his career David has advised governments, large corporates and smaller enterprises on public fund raising, private fund raising and mergers and acquisitions.  In addition, David was a founding partner in SP Angel, an investment banking boutique specialising in advising SMEs on raising funds in the London market, both public and private.

Michael Houston - Non Executive Chairman

Michael Houston is a mining veteran with over 30 years' experience in Africa having worked with companies including Anglo American (Executive roles), Shanta Gold (CEO) and Zimplats Holdings (CEO/COO).  He has also worked on a consultancy basis supporting a number of companies with various project reviews and due dilligence.

Tim Leslie - Non Executive Director

Tim Leslie has worked in the financial markets for over 25 years. He joined Paribas in 1986 and since has worked for JPMorgan, HSBC and then at Donaldson Lufkin & Jenrette (“DLJ”). In 2000, DLJ was bought by Credit Suisse and Tim left to join the hedge fund Moore Capital Management LLC as a portfolio manager. In 2003 Tim launched a new fund at Moore Capital, the Moore Credit Fund, for which he was the Chief Investment Officer. Tim left Moore Capital in 2008 and launched James Caird Asset Management LLP with assets under management of USD3.6bn as at launch. In 2011, Tim founded JCAM investments Ltd to run a family office and make longer term investments.  Tim is the Chair of the Audit, Remuneration and Nomination Committees.

The Company Secretary is David Facey.

Kareevlei Mining

Adam Waugh, Tim Leslie and William van Wyk are directors of the Company's subsidiary, Kareevlei Mining

William van Wyk – Director, Kareevlei Mining

Kareevlei Mining’s BEE Partner is Ghaap Mining, a company wholly owned by William van Wyk. Mr van Wyk is an experienced diamond mining plant engineer with 26 years service with De Beers. He has particular expertise in the manufacturing, design, and maintenance of diamond recovery machinery and will be actively involved in Kareevlei Mining’s operations.

Significant Shareholders

Directors' Interests

 

BlueRock Diamonds plc
United Kingdom


David Facey

4th Floor Reading Bridge House

George Street

Reading

Berkshire

RG1 8LS

South Africa
Adam Waugh

Kareevlei Mining

Wesselton Village

off Old Boshoff Road

Kimberley

South Africa

RSA: +27 087 808 6116

 

Nominated Adviser and Broker

SP Angel Corporate Finance LLP
Stuart Gledhill

+44 (0) 20 3470 0470

Communications and Investor Relations

St Brides Partners
Lottie Wadham/Juliet Earl

+44 (0) 20 7236 1177

Nominated Adviser and Broker

SP Angel Corporate Finance LLP
35 – 39 Maddox Street
London
W1S 2PP

Auditors

Grant Thornton UK LLP
Grant Thornton House
Melton Street
London NW1 2EP

Solicitors to the Company as to English law

Thomas Eggar LLP
14 New Street
London EC2M 4HE

Solicitors to the Company as to South African law

Mervyn Taback Inc
13 Eton Road
Parktown
Johannesburg 2198

Competent Person

Z Star Mineral Resource Consultants (Pty) Ltd
PO Box 336
Steenberg 7947
South Africa

Registrars

Share Registrars Limited
Suite E, First Floor
9 Lion and Lamb Yard
Farnham
Surrey, GU9 7LL

Communications / Investor Relations

Yellow Jersey
30 Stamford Street
London SE1 9LQ

 

 

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