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RAPAPORT... Rockwell Diamonds' revenue fell 39 percent year on year to $9.2 million in the first quarter that ended on May 31. Rough diamond sales dropped 14 percent to $8.3 million and beneficiation revenue fell 83 percent to about $900,000. However, the average price of diamonds sold rose 9 percent to $1,432 per carat. The company recorded a loss attributable to owners of the parent company of $65.1 million, up from a loss of only $345,000 one year earlier.
The company characterized the quarter as a slow time for rough diamond purchases, but concluded that polished prices stabilized due largely to the lower volume traded during the period. Polished diamond dealers continued an attempt to reduce inventory and improve liquidity, according to Rockwell.
Looking forward, Rockwell anticipates a continued reduction in rough supplies and that lower prices "could sustain polished prices and stabilize the disparity between rough and polished prices."
James Campbell, Rockwell's CEO, said, "Rockwell has come through a challenging first quarter as we dealt with some final legacy issues and rationalized our own operations, which have been struggling with declining grades. Having sold Tirisano, suspended operations at Niewejaarskraal and closed Saxendrift Hill Complex, the completion of the Bondeo acquisition delivers a suite of longer life options, including the flagship Remhoogte/Holsloot operations. With these assets and our own Wouterspan and Lanyonvale feasibility and exploration projects we are now able to look to the future and deliver on our medium term objectives of building a sustainably profitable and integrated diamond business."
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