Rockwell Posts $3.7 M Quarterly Loss
July 16, 09
Rockwell Diamonds Inc. posted a C$4.1 million (US$3.7 million) loss in the May 31 ending quarter, impacted by the “continued weakness” in the market, the company said in a release.
In response to the drop in diamond demand, operations at the Wouterspan property are still in care and maintenance in order to preserve cash reserves.
Rough diamond sales during the quarter totaled C$3.9 million (US$3.5 million) compared to C$7.3 million (US$6.5 million) in the May ending quarter last year.
Despite the decline in rough prices - some 50 percent year-over-year according to Rockwell - average diamond prices increased 75 percent to $555 per carat, compared to the previous quarter, indicating a revival in rough prices.
The average price per carat Rockwell received at recent monthly tenders underscore this: $531 in March, $585 in May, $700 in June and $835 in July.