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Rockwell's Revenue +19%, Loss Widens 6%

Jun 1, 2015 12:41 PM   By Ronen Shnidman
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RAPAPORT... Rockwell Diamonds, an alluvial miner based in South Africa, reported that total revenue rose 19 percent year on year to $13.6 million (CAD 17.1 million) during the fourth quarter that ended on February 28. Rough diamond sales during the quarter grew 16 percent to $12.4 million (CAD $15.6 million), driven by the sale of two diamonds that were larger than 120 carats each. As a result, the average price of rough diamonds sold increased 22 percent to $1,544 per carat during the period. Rockwell reported that its net loss rose 6 percent to $6.5 million (CAD 8.2 million) during the quarter, as lower ore grades and a higher volume of treated material raised production costs.

By volume, rough sales fell 12 percent to 8,467 carats during the quarter, a drop attributed  primarily by falling ore grades at the Saxendrift mine and a below-mine-plan ore grade for recoveries at the Niewejaarskraal mine.

Rockwell said that the company suspended operations at Niewjaarskraal in April 2015 to refine its geological model of the site and review the project’s mine plan. The company said it was also reviewing operations at Saxendrift due to anticipated higher stripping ratios at the sight and declining ore grade expected as the mines reaches the end of its economic life.

Revenue from the company’s diamond polishing beneficiation activities jumped 60 percent during the quarter to $1.2 million (CAD 1.5 million).

For the fiscal year, Rockwell reported that rough diamond sales grew 39 percent to $45.3 million (CAD 56.9 million). Revenue from beneficiation activities nearly tripled to $8.8 million (CAD 11 million). Meanwhile, the company's loss rose 39 percent to $11.6 million (CAD 14.5 million).
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