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Sales Slump Highlights 'Despair' at Rockwell
Sep 25, 2016 11:13 AM
By Rapaport News
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RAPAPORT... Rockwell Diamonds sales slumped in its fiscal second quarter because of operational and financial management issues at the South Africa-focused miner.
Sales dropped 21 percent to $7.6 million after group production declined 15 percent to 4,747 carats during the quarter that ended August 31, Rockwell reported.
A general breakdown in controls, inadequate work planning and the lack of project front-end loading has led to a series of financial management concerns and business risks, CEO Tjaart Willemse stressed in a statement. The absence of accountability and a perceived lack of urgency further exacerbates the potential for failure, said Willemse who just two weeks ago replaced James Campbell at the company’s helm.
“It is clear that the business finds itself in a state of despair for a number of reasons,” he added.
A strategic review in August found the recently acquired Remhoogte mine has operated below plan, while construction of the new plant at Wouterspan is behind schedule and costing more than anticipated. The company since signed a five-year agreement with mining contract with C-Rock Mining at Wouterspan and a similar agreement is expected at Remhoogte. It also closed the Saxendrift mine in light of its recent economic performance. |
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Tags:
diamonds, Rapaport News, Rockwell
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