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Rockwell's 4Q Revenue +11%, Loss Narrows to $4M

May 24, 2013 3:41 PM   By Jeff Miller
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RAPAPORT... Rockwell Diamonds reported that revenue increased 11 percent year on  year to $9.1 million for the fourth quarter that ended on February 28. The average per carat value of rough diamonds sold rose 30 percent to $1,355  but the volume of carats  fell 8 percent to 5,308.

Diamond production dropped 5 percent to 3,854 carats and Rockwell carried over inventory of 1,248 carats. The company held a cash balance of $2.8 million at the close of the quarter. Rockwell narrowed its loss to $3.7 million from $10 million one year earlier. Gross rough diamond sales totaled $6.9 million and beneficiation revenue was $2.2 million.

Rockwell stated that it is anticipating a recovery in rough diamond prices of between 5 percent and 10 percent for the 2013 calendar year for smaller diamonds. Demand for larger stones is far outstripping supply, according to its assessment.

James Campbell, the CEO of Rockwell, said, "Although the fourth quarter was challenging, we have taken decisive action at our loss making operations, putting us on a sounder footing for fiscal 2014. We delivered good revenue growth, but our financial performance was impacted by the full costs of retrenchments and care and maintenance processes for Tirisano. At Klipdam, volume increased in line with plan, but the recovery of diamonds was disappointing, resulting in a loss. Now that these legacy operational issues have been addressed, we can focus on our cash generative operations in the Middle Orange River region and on building the company."

Saxendrift is in a stable state of operation and the ramp up of production at the Saxendrift Hill Complex is on track as well as  construction of the new processing facility at Niewejaarskraal.

Tags: inventory, Jeff Miller, Production, Rockwell, rough, sales
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