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Rockwell Diamonds 2Q Revenue Rises on Beneficiation Deal

Oct 19, 2015 4:28 AM   By Rapaport News
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RAPAPORT... Rockwell Diamonds reported that revenue rose 32 percent year on year to $17.3 million (CAD 22.3 million) during the second quarter that ended August 31, 2015 driven by its beneficiation partnership with New York-based diamond manufacturer Diacore. Rockwell’s rough diamond sales fell 14 percent to $9.5 million but the miner swung to a $1.9 million profit for the period, from a $1.2 million loss a year earlier.

With diamond markets depressed this year, CEO James Campbell noted that diamond manufacturers have closed their factories rather than manufacture unprofitable rough. He added that open market rough and polished prices seem to have bottomed and the company expects rough prices to stabilize as polished diamond demand is expected to improve over the U.S. Christmas shopping season.

Rockwell’s average rough price rose 20 percent to $1,783 per carat during the second quarter, including sales that the company conducts on behalf of contract miners which skewed the results due to last year’s much higher supply. The company’s own production saw average prices down 24 percent to $1,791 per carat.

Rockwell’s production for the quarter fell 41 percent to 5,613 carats, which includes output from its Saxendrift mine and the Hemhoogte – Holsloot Complex, as well as 28 carats supplied by contractors. The company’s beneficiation income nearly quadrupled to $7.8 million. Under its agreement with Diacore, Rockwell is entitled to 50 percent of the profits from the sale of polished diamonds produced by Rockwell and sold through Diacore.

For the first half of the fiscal year, Rockwell’s revenue declined 1 percent to $24.4 million, and recorded a loss of $2.1 million compared to a loss of $880,269 a year earlier.
Tags: beneficiation, Diacore, Rapaport News, Rockwell Diamonds
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