Land operations - South Africa
Carat production in the second half was 7% higher (55 444 carats) than the first half (51 861 carats) totalling 107 305 carats (2007: 129 950 carats). The year-on-year decrease in total carats was mainly due to the decommissioning of the Bloeddrif plant and the lower than anticipated grades at Baken, both of which have now been addressed.
LOWER ORANGE RIVER
BAKEN
South African production declined from 51 871 carats to 43 670 carats due to lower grade at Baken during the first quarter. Notwithstanding the considerable inflationary pressure on operating costs, notably fuel, the operating margin increased to 22,4% (20,9%).
Baken produced 29 799 carats (39 300 carats) with an average stone size of 1,05 carats per stone (1,16 carats per stone). The average grade realised was 1,40 carats/100 m3 (1,63 carats/100 m3) with grade in the first quarter being 1,20 carats/100 m3 which recovered to 1,58 carats/100 m3 in the second quarter.
RICHTERSVELD OPERATIONS
The Reuning operation achieved 9 758 carats (6 642 carats). The recommissioned Bloeddrif plant produced 1 203 carats (nil carats) over the reporting period. Plans to introduce a high-volume, low-cost operation have commenced, with plant volumes increasing from 40 000 m3 to 60 000 m3 per month after the introduction of an in-field screening plant. An infill bulk sampling programme to gain more geological information to the extent of the reserve has also commenced, with initial results confirming our confidence levels in the grade.
The Reuning operation achieved 9 758 carats (6 642 carats). The recommissioned Bloeddrif plant produced 1 203 carats (nil carats) over the reporting period. Plans to introduce a high-volume, low-cost operation have commenced, with plant volumes increasing from 40 000 m3 to 60 000 m3 per month after the introduction of an in-field screening plant. An infill bulk sampling programme to gain more geological information to the extent of the reserve has also commenced, with initial results confirming our confidence levels in the grade.
