Rockwell Posts Profits but Challenges Remain
July 14, 16
(IDEX Online News) – Mid-tier diamond production company Rockwell Diamonds Inc. has reported its results for the first quarter of the 2017 fiscal year, which showed that revenue increased by 36 percent.
The company said that its rough diamond revenues had increased 40 percent year-on-year to $12.1 million and 20 percent over the fourth quarter of the 2016 fiscal year, which was mainly due to new production from Remhoogte-Holsloot (RHC). Rockwell added that beneficiation revenue fell 56 percent to $400,000, resulting in a total revenue increase of 36 percent.
The company’s diamond sales decreased to $9.2 million compared to $12.3 million over the same period a year previously, which was mainly due to the substantial restructuring and the cost of closing Niewejaarskraal.
Rockwell recorded a $3.3 million profit, which compared favorably to a $3.1 million loss in the first quarter in the prior year.
“Our substantially improved results for the first quarter of fiscal 2017 reflect the benefit of the strategic interventions of late fiscal 2016,” said Rockwell president and CEO James Campbell.
“Enhanced productivity on our operations has resulted in improved diamond recoveries and diamond values, which have translated in increased diamond reserves, on both a year-on-year and quarter-on-quarter basis.”
Campbell further cautioned that the company expected more challenging quarters ahead as the company considers transitioning RHC to Palaeo gravels and ramp up of Wouterspan.