|
|
Rockwell Back in the Black After Restructuring
Jul 13, 2016 9:50 AM
By Rapaport News
|
|
|
RAPAPORT... Rockwell Diamonds swung to a profit in the first fiscal quarter that ended May 31 due to improved productivity at its South Africa operations following a strategic review.
The junior miner posted a profit of $438,000 (CAD 570,000) during the period as rough diamond sales surged 46 percent to $9.3 million (CAD 12.1 million) and costs were cut by 25 percent. The company recorded a loss of $4 million (CAD 5.2 million) a year earlier.
“Our substantially improved results for the first quarter of fiscal 2017 reflect the benefit of the strategic interventions of late fiscal 2016,” said James Campbell, Rockwell’s chief executive officer. “Enhanced productivity on our operations has resulted in improved diamond recoveries and diamond values, which have translated in increased diamond revenues.”
A strategic review in the past year saw Rockwell sell the Tirisano mine in Angola, place the Niewerjaarskraal mine in South Africa on care and maintenance, and reduce production at its Saxendrift mine. Current production is focused on raising output at the Wouterspan mine and developing a plan for the Remhoogte – Holsloot operation which Rockwell acquired during the quarter.
Rockwell expects rough prices to remain stable but trading to slow during the ongoing second fiscal quarter, “which is historically a quiet trading period,” the company explained.
|
|
|
|
|
|
|
|
|
|
Tags:
diamonds, Rapaport News, Rockwell, Saxendrift, South Africa
|
|
|
|
|
|
|
|
|
|
|
|
|