Rockwell Posts 11-Percent Jump On Year in Revenues in Q4

The company reduced its net loss to $3.7 million in the quarter from a loss of $10 million in the prior year period.

The miner said that the average price per carat jumped 30 percent on a year earlier to $1,355, however the amount of rough sold slipped 8 percent to 5,308 carats.

Its output of diamonds decreased by 5 percent to 3,854 carats due to a 6-percent decline in the overall volume of gravel processed, including the effect of a decision to put its Tirisano operation on a care-and-maintenance status in the fourth quarter. The firm carried over inventory of 1,248 carats.

Rockwell had a net cash balance of $2.8 million at the end of the quarter.

It reported gross rough diamond sales of $6.9 million and beneficiation revenue of $2.2 million.

In its outlook, the company forecasts a recovery in rough diamond prices of between 5-10 percent for the 2013 calendar year for smaller diamonds. "In the market for the larger diamonds that make up most of Rockwell’s production profile, demand continues to outstrip supply. There has also been increasing attendance at Rockwell’s monthly tenders, and this is interpreted as a positive indicator of rough diamond demand and prices."

CEO James Campbell said, "Although the fourth quarter was challenging, we have taken decisive action at our loss-making operations, putting us on a sounder footing for fiscal 2014. We delivered good revenue growth, but our financial performance was impacted by the full costs of retrenchments and care and maintenance processes for Tirisano.

"At Klipdam, volume increased in line with plan, but the recovery of diamonds was disappointing, resulting in a loss. Now that these legacy operational issues have been addressed, we can focus on our cash generative operations in the Middle Orange River region and on building the company."