The diamond mining company, which released its results on Friday, reported that sale of diamonds grew to 9.7 million Canadian dollars for the three months ended 31 May 2014 from 7.8 million Canadian dollars in the previous comparative period.
Beneficiation income also has a significant increase to 5.4 million dollars for the period under review from 1.2 million dollars in 2013.
“We are pleased to report that Rockwell showed a bottom line net profit of 345,000 dollars in the first quarter. This is a first, as well as a significant achievement after three years of rebuilding Rockwell,” Rockwell Diamonds said in a statement.
“These results also represent the eighth successive quarter of US dollar denominated revenue growth, highlighting the consistent delivery against our plan, which saw our exit from lossmaking operations and the resolution of a number of corporate legacy issues.”
(READ MORE: Rockwell Diamonds revenue up amid growth in diamond demand)
[DATA RDI:Rockwell Diamonds] is a mid-tier diamond mining and development company headquartered in Canada. The company however trades on the South African, Canadian and American exchanges.
Operating profit before amortisation and depreciation increased to 4.2 million dollars from one million dollars in 2013.
The firm recorded a gross profit of 2.6 million dollars in 2014 from a loss of 185.4 thousand dollars, while production costs increased to 10.8 thousand dollars for the period from 7.9 million dollars in 2013.
Finance income decreased to 129.1 million dollars from 168.2 million dollars, and loss before taxation was reported at 897.7 thousand dollars for the period from 1.4 million dollars in 2013.
“The diamond market between March 2014 and May 2014 was similar to the first quarter of the 2014 calendar year with steady rough and polished demand and continued concerns relating to liquidity in the industry. Polished diamond demand has been strong,” Rockwell explained.
“Although the industry is in a steady state the main concern remains the low availability of finance to the industry and primary suppliers continue to finance the secondary market.”
Reserves for the company amounted to 10.1 million dollars from 10 million dollars in 2013, with profit before net finance costs declining to 921.9 thousand dollars from 1.4 million dollars in the previous comparative period.
“We continued to deliver towards our organic growth strategy and are on track to meet our medium-term objective of processing 500, 000m (3) of quality gravels per month. Meanwhile, we have noted renewed investor interest in the diamond sector as we continue to review value accretive consolidation opportunities to supplement organic growth prospects.”