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Rockwell Records Loss as Sales Slide

Oct 31, 2016 11:07 AM   By Rapaport News
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RAPAPORT... Rockwell Diamonds swung to a loss with revenue slumping in the second fiscal quarter, as mining grades and diamond prices fell.

Sales dived 36 percent to $10 million (CAD 13.4 million) in the three months that ended August 31 as the average price of rough sold dropped 13 percent to $1,560 per carat. Rough diamond sales slid 14 percent to $7.9 million and the miner reported a $447,778 loss versus a profit of $895,556 a year ago.

The results come after Rockwell’s chief executive officer James Campbell resigned in September, with his replacement Tjaart Willemse claiming the company was in a “state of despair.” Profitability at the Wouterspan mine in South Africa remains under pressure because of low production capacity, while mining at the country’s Remhoogte was suspended at the end of September because its business model was deemed sustainable. The Saxendrift mine was also suspended in September due to "depletion of economic resources."

Rockwell will focus on “accelerating production ramp-up at Wouterspan and driving down our cost levels, while becoming a high-volume low-cost producer,”Willemse said.

“Other aspects of the business turnaround to ensure strategic repositioning of the ‘new’ Rockwell are receiving high priority and the full support of our board of directors.”
Tags: James Campbell, mining, Rapaport News, Remhoogte, Rockwell, Rockwell Diamonds, rough diamond, rough prices, Saxendrift, Tjaart Willemse, Wouterspan
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