Rockwell Moves To Loss in Q2 as H1 Loss Widens

Rockwell Diamonds on Thursday said it had swung to a net loss of C$2.25 million (US$1.88 million) in the second fiscal quarter owing to industrial action and the resulting loss of production between late July and throughout August. The diamond miner had posted a net profit of C$431,209 in the year ago quarter.

“4,266.25 carats were produced at the Holpan/Klipdam, Wouterspan and Saxendrift operations, which was about 35 percent under budget due to industrial action,” the company said in a statement.

Total quarterly revenue dropped 29 percent to C$10.17 million from C$14.22 million a year earlier. Revenue from rough diamonds also fell 29 percent to C$9.91 million. The company sold 5,024.34 carats at an average price of US$1,951.41 per carat.  

For the six months ending August 31, 2008, Rockwell said its net loss widened to C$3.05 million from C$1.49 million in the year earlier period. Total sales for the six month period fell 20 percent to C$17.49 million, of which rough diamond sales dropped 22 percent to C$17.01 million.

During the first half of the year, the company’s operations at Holpan/Klipdam, Wouterspan and Saxendrift produced 10,576.83 carats, of which 9,879.61 carats were sold at an average price of US$1,709.31 per carat.

Rockwell increased its interest in the Holpan/Klipdam and Wouterspan properties to 74 percent, with the remaining 26 percent being held by a Black Economic Empowerment (BEE) consortium.