Rockwell Posts Soaring Revenue But Swings To Net Loss

Rockwell CEO and President James Campbell.

(IDEX Online News) – Rockwell Diamonds Inc. posted a 71-percent rise on the year in revenue for its second fiscal quarter ended August 31 to $16.9 million. The figure is comprised of $14.2 million from diamond sales, and $2.7 million in beneficiation income.

The miner said it was the ninth successive quarter of dollar denominated revenue growth.

Rockwell reported a net loss of $1.5 million for the quarter compared to first quarter net profit of $300,000.

The firm said it had also reached a two-year agreement with the National Union of Mineworkers for a 9-percent annual wage increase.

Rockwell CEO and President James Campbell said: "Rockwell's overall second quarter performance is positive, providing further evidence that our business has become more resilient as we have transitioned our operational focus entirely into the MOR (Middle Orange River). This quarter represents our ninth successive quarter of US$-denominated revenue growth.

"Our revenue increased 71 percent, including a 55-percent increase in total sales from company properties, with additional revenue of $2.7 million derived from our beneficiation joint venture with Diacore. Equally important is the reduction in unit costs: Our average cash operating cost per m3, which had persistently been well above the $13.0 per m3 mark in the previous three quarters, declined more than 20 percent to $10.3 per m3 in the second quarter."