Rockwell Diamonds Slashes Net Loss in Fiscal Q3

(IDEX Online News) – Rockwell Diamonds Inc. reduced its net loss in its third fiscal quarter to $400,000 from $4.7 million a year earlier while posting its sixth consecutive quarter of US dollar denominated revenue growth.

Revenue increased 35 percent year-on-year to $11.9 million, with $11.2 million from diamond sales, a rise of 57 percent, and beneficiation income of $600,000, down 61 percent.

Rockwell CEO and President James Campbell said: "Our third quarter results show the financial merits of our strategy to focus on the Middle Orange River [project]. We reported a sixth consecutive quarter of US$ denominated revenue growth, producing a second successive quarterly gross profit (after amortization and depreciation) of $1.3 million. Normal operations produced cash flow of $2.0 million (prior to working capital movements) and our net loss for the quarter narrowed to $0.4 million."

"Looking forward our focus remains on our mid-term objective of processing 500,000m3 per month of quality gravels, with tight operation and cost controls, in order to achieve consistent production and quarterly earnings. At Saxendrift, we are busy with a detailed earthmoving vehicle fleet optimization exercise to improve earthmoving availabilities while also evaluating ways to increase the plant's capacity.

In order to extend the life of our MOR properties, we are conducting contiguous exploration at Saxendrift and SHC which is aimed at both extending and enhancing the quality of the resource. With the delivery of the second phase plant expansion at Niewejaarskraal, the company's total monthly processing capacity will increase to 340,000m3 with a further 200,000m3 per month indirectly through royalty contract mining production," Campbell added.