RAPAPORT... Rockwell Diamonds Inc. reported a loss of $1.5 million in the second quarter that ended on August 31 compared with a profit of $300,000 one year ago as higher revenue and lower unit costs were offset by lower beneficiation income, resulting in a $3.4 million downward inventory adjustment. Earlier, the company reported that revenue jumped 71 percent year on year to $16.9 million, with $14.2 million from direct diamond sales and an additional $2.7 million from its beneficiation agreement with Diacore, formerly Steinmetz.
The company noted that it was its ninth consecutive quarter of growth, underpinned by a 57 percent increase in the volume of gravel processed and a 36 percent rise in carat output from all of its mines. Production rose 36 percent to 9,581 carats, with 5,817 carats derived from the company's royalty mining contractors. Inventory at the close of the second quarter totaled 5,954 carats carried forward, including 3,034 carats on royalty mining contracts.
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