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Rockwell's 2Q South Africa Production +46%

Sep 29, 2013 6:27 AM   By Deena Taylor
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RAPAPORT... Rockwell Diamonds reported that production at its mines in South Africa grew 46 percent year on year to 7,046 carats in the second quarter that ended on August 31. The company attributed the  higher production to a stronger focus on its Middle Orange River operations as well as to its royalty mining contract strategy at the Tirisano mine. Diamond sales increased 25 percent year on year to $8.5 million. The number of carats sold rose 9 percent to 5,623 carats at an average price of $1,512 per carat during the quarter.

Rockwell reported that a total of 3,549 carats were recovered at its own operations during the quarter, while 3,497 carats were recovered through contractor mining at Tirisano.

"Our royalty mining contracts continue to gain momentum and are performing well," Rockwell's CEO James Campbell, said. He added that production volume is expected to increase further in the third quarter as a fifth contract comes into play.

Revenue from Rockwell's own operations, which include the Saxendrift mine, fell 2 percent to $6.6 million. Rockwell reported that the average price of diamonds recovered from its own operations rose 84 percent to $2,488 per carat, which offset the impact of a 47 percent decline in the amount of carats sold during the period.

Rough sales from Tirisano's mining contractors achieved $1.9 million during the quarter, 12.5 percent of which, or $236,600, accrued to Rockwell.
Tags: Deena Taylor, diamond, diamonds, Middle Orange River, Rockwell Diamonds, Saxendrift, Tirisano
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