Rockwell Diamonds Revenue Soars 39% On Year In Fiscal 2014
May 25, 14
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The miner which operates in South Africa posted its seventh successive quarter of dollar denominated revenue growth reported in the fourth quarter.
Rockwell CEO and President James Campbell said: "Our fiscal 2014 results are beginning to reflect the operational turnaround of the company and its core focus on the Middle Orange River (MOR) region of South Africa. Our revenue increased 39 percent year-on-year to $45.1 million, underpinned by a 52-percent increase in diamond sales.
“These improvements have been consistent each quarter over the last two years, as we have now reported seven consecutive quarters of dollar denominated revenue growth. Rockwell reported an operating margin before amortization and depreciation of $6.0 million, compared to $1.1 million in the prior year. Economies of scale as a result of operating exclusively in the MOR also emerged, as production costs for the year increased 25 percent to $39.2 million, against the 52 percent improvement in the value of diamond sales.
“We believe that the implementation of our earthmoving vehicle upgrade program should unlock further benefits as we improve the fleet overall utilization to match our production capacity and renew the equipment to lower our maintenance expenses while improving availabilities. Equally pleasing is the positive cash flow from normal operations of $3.7 million (prior to working capital movements)."
“We are pleased too, that diamond quality and the frequency of larger stones has improved as anticipated. This included the recovery of 12 stones between 50 carats and 100 carats and five plus 100 carat rough diamonds in fiscal 2014, the largest of which was a 287 carat stone, the biggest stone recovered in recorded history in the region. The second phase of the Niewejaarskraal mine was commissioned on schedule at the end of fiscal 2014 and its diamond production performance is improving. At Saxendrift, the plant continues to operate consistently.”