Rockwell Posts Loss, Reports Rising Rough Diamond Prices
June 28, 09
Alluvial diamond exploration and mining firm Rockwell Diamonds Inc. posted a net loss of C$13 million (US$11.3 million) for the fiscal year ending February 28, 2009. Revenue from sales was C$34.6 million (US$30 million) and mining costs totaled C$25.1 million (US$21.8 million).
Rockwell said it sold some of its mined diamonds directly in the market at spot prices, starting to receive higher prices for them in March after prices dropped on average by some 50 percent following the October economic crisis. The average price per carat received from a tender in February was $318.32 p/c, In the March tender average prices increased to $531.43 p/c and to $584.69 p/c in May.
The company mined 17,503 carats at their Holpan, Klipdam, Wouterspan and Saxendrift mines. Of these goods, 15,320.4 carats were sold at an average price of $2,159.30 per carat. They included a white 189.6 carat diamond recovered from the Klipdam mining operation in September 2008 that sold for about $10.2 million.
Three yellow stones, manufactured under the marketing agreement with the Steinmetz Diamond Group, were sold in October 2008.
Rockwell has established a significant presence in alluvial deposits which have consistently yielded high value gemstone diamonds. Plus 2 carat diamonds comprise more than 65 percent of the company's production and are reportedly of exceptional quality.
During fiscal 2009, Rockwell operated three alluvial diamond mines - Holpan, Klipdam and Wouterspan - and commissioned a new plant at Saxendrift, bringing its fourth operation into production. The company was granted the mining right for the Niewejaarskraal project, located on a high level terrace similar to Saxendrift in the Middle Orange River area.
Following the economic fallout, Rockwell extended its year-end holiday shutdown from one to two months during the fourth quarter. The Holpan, Kilpdam and Saxendrift mines resumed operations in early February but Wouterspan continues to be held on care and maintenance.