Rockwell Diamonds reports Q2 revenue growth - CNBC Africa

Rockwell Diamonds reports Q2 revenue growth

Earnings

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Rockwell says sale of diamonds increased to 14.2 million Canadian dollars in the 2014 second quarter. PHOTO: Dalby Diamonds

“Rockwell’s overall second quarter performance is positive, providing further evidence that our business has become more resilient as we have transitioned our operational focus entirely into the Middle Orange River (MOR),” said company chief executive and president, James Campbell.

(READ MORE: Rockwell aims to grow MOR production footprint)

“Our revenue increased 71 per cent, including a 55 per cent increase in total sales from company properties, with additional revenue of 2.7 million dollars derived from our beneficiation joint venture with Diacore.”

Campbell further stated that the reduction in unit costs for the three months ending August 2014 was equally important.

“Our average cash operating cost per m3, which had persistently been well above the 13.0 US dollar per m3 mark in the previous three quarters, declined more than 20 per cent to 10.3 US dollars per m3 in the second quarter,” he said.

“This is directly attributable to management interventions including lower costs and higher volumes at Saxendrift and SHC after implementing our EMV renewal plan and increased throughput at Niewejaarskraal.”

(READ MORE: Diamond industry still buoyant for Rockwell Diamonds)

The diamond mining and development company saw sale of diamonds increase to 14.2 million Canadian dollars in the 2014 quarter from 8.6 million Canadian dollars for the three months ended 31 August 2013.

However, operating profit before amortisation and depreciation decreased from 2.5 million Canadian dollars in the 2013 quarter to 1.1 million Canadian dollars in 2014.

[DATA RDI:Rockwell] also reported a loss before taxation of 1.8 million Canadian dollars in 2014 from a loss of 866,000 Canadian dollars in 2013, and a basic and diluted loss per share of 2.60 cents in 2014 from a loss of 2.81 cents in 2013.

“Across the operations, Rockwell continues to focus on managing its operating costs and volumes processed,” said Rockwell.

“Having completed the corporate turnaround, led by a strong management team, the company continues to review prospects to grow and leverage its diamond value chain skills. These include value accretive consolidation opportunities in the southern African diamond sector, all of which are evaluated against a strict set of acquisition criteria.”

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