RAPAPORT... Rockwell Diamonds reported that revenue fell 20 percent year on year to $7.6 million (CAD 7.4 million) in the second fiscal quarter that ended on August 31, 2012. The junior mining company posted a loss of $4.3 million (CAD 4.2 million) compared with a profit of $2.1 million (CAD 2 million) the previous year.
Rockwell’s rough diamond sales were basically flat at $7.1 million (CAD 7 million) during the quarter, while its beneficiation revenue, through a partnership with Steinmetz Diamond Group, slumped 81 percent to less than $500,000.
The company explained that its focus during the quarter was to drive efficient mining at the Saxendrift and Klipdam operations, while most of the loss incurred was attributed to the new Tirisano mine, which was temporarily closed in mid-July to implement a new right size plan. The company is currently constructing a fourth mine, Saxendrift Hill, which is scheduled to commence production by March 2013.
Group production rose 14 percent to 4,218 carats during the quarter.
During the first six months of the fiscal year, Rockwell’s revenue fell 18 percent to $14.8 million (CAD 14.5 million), while its loss expanded to $12.8 million (CAD 12.5 million) from only $300,000 the previous year.
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