|
RAPAPORT... Rockwell Diamonds' production rose 53.7 percent year on year to 9,148 carats during its third quarter that ended on November 30. Revenue from diamond sales of 6,066 carats increased 45.3 percent to $10.7 million, representing an average price decline of 3 percent to $1,764 per carat. Carat production from the company's Middle Orange River operations surged 111 percent year on year and delivered a 117 percent increase in rough diamond sales. With a 24 percent increase in average carat value to $2,198 from that region, the value of sales jumped 169 percent to $7.8 million. Volume production from Rockwell's three mines in the Middle Orange River region increased by 65 percent due to the commissioning of new mining infrastructure at Saxendrift Hill Complex and Niewejaarskraal, both of which are ramping up. James Campbell, Rockwell's CEO, said, "We are pleased that our production and sales figures for the third quarter show that our strategy to focus on the Middle Orange River region is bearing fruit. We more than doubled our carat production and sales from these properties while the value of sales increased almost threefold to $7.8 million and the average price per carat increased 24 percent. Furthermore, the extraordinary recovery of the five rough diamonds exceeding 115 carats since the end of August 2013, the largest of which was 287 carats, reinforces the merits of this Middle Orange strategy." Rockwell Diamonds has significantly enhanced its processing capacity at the greater Saxendrift property, including Saxendrift, Saxendrift Extension and Saxendrift Hill Complex. "The production ramp up at Niewejaarskraal is on track,'' Campbell said. ''The next phase of the initial plant commissioning will be completed by the end of January with the installation of an infield screen and rental bulk X-ray system, bringing monthly volume to 100,000m3. We have already confirmed the effectiveness of these fit-for-purpose technologies to handle Middle Orange Region gravels, underpinning our confidence that they will enable us to optimize Niewejaarskraal's mining activities. Subsequently, we will turn our attention to implementing our Middle Orange River strategy at our other properties, including Wouterspan." Rockwell's royalties from mining contracts delivered $357,500. Campbell added, ''Although our operator at Zwemkuil terminated their contract to pursue other opportunities, another operator will commence at the Kwartelspan property in the fourth quarter as well as a sixth royalty miner who will imminently commence operations at Tirisano." Additionally, Rockwell Diamonds reached an agreement with a new Black Economic Empowerment (BEE) investment company to acquire a 30 percent equity stake in the Middle Orange River operations to replace former BEE partner, Africa Vanguard Resources. Rockwell and Africa Vanguard agreed to end its partnership in March 2012 and the identity of the new partner will be communicated after the deal is finalized.
|