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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.
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Tags:
Middle Orange River, mining, MOR, Rapaport News, restructuring, Rockwell, Rockwell Diamonds, rough sales, Saxendrift, South Africa, Wouterspan
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