Rockwell Diamond Posts $9.4 Million Loss for Fiscal 2008
May 28, 08
Diamond exploration and mining firm Rockwell Diamonds Inc posted a fiscal year 2008 loss of $9.4 million, or $0.05 per share. Revenues for the nine-months ended February 29, which constituted the fiscal year, totaled C$36.0 million (US$36.24 million) on diamond sales of 17,667.67 carats.
Rockwell notes that the loss is a result of a non-controlling interest (49 percent) of $5.9 million; stock-based compensation of $1.8 million; interest on capital leases, exploration and evaluation of new alluvial diamond projects and lower foreign exchange conversion gains due to a weakening rand against the Canadian dollar.
The average price of diamond sales realized over the year was US$1,984.68 per carat, a 97 percent increase on the average price achieved during the previous year, which was $1,005.53.
The firm’s consolidated positive cash is $6.7 million from operating activities, despite a consolidated accounting loss of $9.4 million, and it achieved an operating profit of $6.9 million
These nine-month results constitute the company’s fiscal year results, due to the fact that during the previous year, Rockwell changes its fiscal year-end from the end of May to the end of February.
Rockwell mines and develops alluvial diamond deposits, specifically projects that have potential for production of high-value gemstone diamonds predominantly larger than 2 carats in size. Plus 2 carat stones comprise more than 70 percent of the company’s production.
During fiscal 2008, Rockwell operated three alluvial diamond mines – Wouterspan, Holpan and Klipdam – and completed bulk sampling at Makoenskloof in
In addition, Rockwell and Steinmetz Diamond Group entered into a beneficiation agreement, whereby profits on the added value realized by cutting, polishing and marketing high-value Rockwell diamonds will be shared.