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Rockwell's 3Q Revenue +59%, Loss Widens to $5M
Jan 14, 2015 10:33 AM
By Ronen Shnidman
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RAPAPORT... Rockwell Diamonds, a junior alluvial diamond miner, reported that revenue increased 59 percent year on year to $15.8 million (CAD18.9 million) during the third quarter that ended on November 30. Sales were given a boost from an increase in the volume of rough diamonds that were sold. Management stated that the latest reporting period represented the tenth consecutive quarter of increased diamond revenue.
Rough diamond sales jumped 55 percent to $14.7 million (CAD 17.5 million) during the quarter, while the volume doubled to more than 13,759 carats. Additional revenue, from Rockwell’s beneficiation activities, more than doubled to $1.2 million (CAD 1.4 million) during the quarter.
However, Rockwell declared a loss of $4 million (CAD 4.75 million) during the period compared with a loss of $318,000 (CAD 380,000) one year earlier, due to a steep decline in profitability and a reduced recovery of large diamonds, which negatively impacted its sale price per carat. Ultimately, the average price achieved on rough diamonds dropped 32 percent to $1,267 per carat.
“We are mindful that we need to ensure our ability to profitably process some of the lower-grade resources and are committed to further drive down unit costs,” said James Campbell, Rockwell’s CEO and president..
The miner also noted in its general market comments that global rough sales slowed in the third quarter and garnered lower prices, as polished manufacturers were hit by a liquidity squeeze.
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Tags:
alluvial, large diamonds, revenue, Rockwell, Ronen Shnidman
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