Rockwell Diamonds Q1 Loss Shrinks to $802,532
July 15, 08
Rockwell Diamonds Inc on Tuesday announced revenues from sales of C$7.25 million (US$7.26 million) for the three months ended May 31, including revenues from contract sales of C$156,220 (US$156,429) from the sale of 4,943.30 carats, and cost of sales and amortization totaling $7.18 million (US$7.19 million).
Operating profit for the quarter totaled C$148,133 (US$143,354), while net general and administrative expenses came to C$1.45 million (US$1.451 million) offset by a net tax recovery of C$414,012 (US$414,571), resulting in a loss of C$801,353 (US$802,532) for the three months, or C$0.003 (US$0.003) per share.
This is down from the loss of C$0.03 (US$0.029) recorded in the prior year period.
The average price of diamond sales realized was US$1,432.80 per carat, up from US$977.07 in the previous year period.
Total diamond production totaled 6,310.58 carats, extracted from the company’s Wouterspan, Holpan and Klipdam projects. Diamonds in inventory as of May 31 totaled 2,398.87 carats.
In the release, the diamond mining and exploration company noted that it is “positioned for growth by mining and developing alluvial diamond deposits.”
Rockwell acquired a 51 percent interest in the Holpan, Klipdam and Wouterspan alluvial diamond mines located in the Northern Cape Province of South Africa on January 31. During the quarter, the remaining interest in the properties was acquired 85 percent of the proceeds from the production from these operations was received by the firm.
In early June and subsequent to the end of the quarter, Rockwell’s Black Economic Empowerment ("BEE") partner, African Vanguard Resources (Pty) Ltd., increased its interest to 26 percent, following which the company will receive 74 percent of the proceeds of production.