Rockwell Releases Mixed Q4 Performance Figures

(IDEX Online News) – Rockwell Diamonds Inc. has announced that its fourth-quarter operating performance was negatively affected by lower grades and a drop in carat sales, despite being offset by higher overall revenue in the quarter ended February 28.

Gross diamond revenues increased 19 percent to C$17.1 million (from $11.56 million in Q4 in 2014), including beneficiation revenue. Rough diamond sales increased 16 percent to $15.6 million (up from $13.4 million over the same period a year previously).

There was a 12 percent drop to 8,467 carats in carat sold. Two diamonds of more than 120-carats each were recovered at Saxendrift, which led to an increase in overall carat value by 22 percent - to $1,544 per carat.

“While we achieved revenue growth of 19 percent to $17.1 million and our average cash operating cost continued to trend down by 19 percent to $11.2 per m³, operating profit was negatively impacted by lower grades and higher volumes processed,” said CEO and president James Campbell.

“We were pleased to recover two 120+carat rough diamonds at Saxendrift, in spite of increased stripping ratios and declining average grades as we approach the end of its current economic mine life,” Campbell added.

Rockwell suspended mining operations at Niewejaarskraal in early April, as grades remained consistently below par and the mine was not reaching its economic potential was not being achieved. Partly as a result of this, Rockwell recorded a gross loss of C$3.1 million.