|
RAPAPORT... Rockwell Diamonds' production rose 36 percent year on year to 9,581 carats in the second fiscal quarter that ended on August 31, while the value of its diamond sales rose 55 percent to $13.2 million. The company sold 8,864 carats, representing a 58 percent year-on-year increase, while the average price per carat fell 2 percent to $1,489. Rockwell's diamond inventory on August 31 totaled 5,954 carats, including royalty contract miners' inventory of 3,034 carats. Specifically from the company's Middle Orange River operations in South Africa during the second quarter, carat production rose 6 percent to 3,764 carats with volume sales up 43 percent to 3,810 carats. The value of revenue from this operation rose 36 percent to $9 million. James Campbell, the CEO of Rockwell Diamonds, said that production results continued to benefit from the focus on Middle Orange River. "Volume of gravel processed (excluding overburden and a small stockpile of gravels) increased 54 percent compared to the prior year, providing evidence that our processing plants have risen to the challenge of the higher mining volume. Accordingly, we are well placed to show a sustainable reduction in unit costs. Carat production rose 6 percent from our own operations, due to a higher volume of ground processed, offset by lower grades, in the second quarter. These however, were in line with the typical cycle of alluvial mining and remained well within the long-term average grades for the region. "As our volume has increased, so we have benefited from a higher average stone size, which was in excess of 4.50 carats in the second quarter. We produced two gem-quality 100-carat-plus diamonds, which brings the total to eight 100-carat-plus stones recovered from our operations in the past 12 months," he said. In addition, Rockwell Diamonds recovered 13 more stones in the 20-carat-plus category, underpinning production sales growth. "Our five royalty mining contractors at Tirisano continue to deliver positive returns for Rockwell. Second quarter carat production and carat sales from these partners increased 66 percent and 70 percent respectively. Diamond values showed a 30 percent increase per carat, resulting in the value of sales from contractors rising by 121 percent to $4.2 million," Campbell stated.
|