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Rockwell Diamonds’ 3Q Revenue -63% as Loss Grows

Jan 19, 2016 2:08 AM   By Rapaport News
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RAPAPORT... Rockwell Diamonds reported revenue decreased 63 percent year on year to $4.9 million (CAD 7.1 million) in the third quarter that ended November 30 as diamond prices around the world dropped and a fatality at the Remhoogte plant in South Africa caused a two-week shutdown at the mine.

The loss for the quarter nearly doubled to $6.4 million compared with the same period last year, according to a statement January 14. Rough diamond sales declined 60 percent to $4.8 million, while beneficiation income – revenue from a deal with polished-diamond manufacturer Diacore – slumped 89 percent to $106,606.

However, the average price per carat sold increased 16 percent to $1,328.

"We experienced tough operating conditions in the third quarter,” said Rockwell chief executive officer and president James Campbell. “Some was unfortunately due to the loss of our colleague in an accident, and some was due to processing volumes being materially impacted by bottlenecks in screening.”

Results were further impacted by “lower carat production and pressure on global rough-diamond prices,” Campbell added.

The news comes after Rockwell announced in a statement January 7 that it would close its Johannesburg head office and end operations at its Saxendrift mine in South Africa. As part of the restructuring, which includes a shakeup of its workforce, the company issued all its employees with retrenchment notices.
Tags: Diacore, mining, Rapaport News, Remhoogte, Rockwell Diamonds, South Africa
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