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Rockwell Nearly Doubles Loss in Fiscal 2016

Jun 2, 2016 8:27 AM   By Rapaport News
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RAPAPORT... Rockwell Diamonds’ sales slumped and its loss almost doubled in the past fiscal year which also saw the miner announce a restructuring aimed at reviving the company’s fortunes.

Revenue slumped 30 percent to $36.1 million (CAD 47.3 million) with diamond sales diving 34 percent to $28.8 million in the fiscal year that ended February 29. The average price of diamonds sold increased 12 percent to $1,513 per carat from $1,345 per carat last year.

The company’s loss for the year skyrocketed 91 percent to $21.1 million.

The company will soon close the Saxendrift mine in South Africa but said its economic life has been extended to June 2016 from a previous plan of May.

Rockwell also announced in January that it will recommission its Wouterspan mine and close its Johannesburg headquarters, which would include staff reduction and moving senior executives to South Africa’s Middle Orange River (MOR) region. The changes were part of a wider plan to streamline the company.

The company “will continue to scrutinize mining efficiencies and address any residual process deficiencies and bottlenecks,” said James Campbell, Rockwell’s chief executive officer (pictured).

“The diamond market is beginning to show signs of recovery thanks to a combination of midstream restructuring and supply constraints and it is our objective to be able to capitalize on these improvements as we deliver on our revised strategic objectives,” Campbell added.
Tags: Middle Orange River, mining, MOR, Rapaport News, restructuring, Rockwell, Rockwell Diamonds, rough sales, Saxendrift, South Africa, Wouterspan
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