Rockwell Posts C$4.5 Million Profit
January 15, 09
Rockwell Diamonds Inc. third fiscal quarter ended on a positive note. The diamond miner posted a net profit of C$4.5 million (US$ 3.6 million) for the quarter ending November 31, 2008. The good results elevated Rockwell’s year-to date result, posting a net profit of C$1.4 million (US$ 1.12 million) for the nine month period.
Third quarter production totaled 5,981.25 carats. Most of these goods, 5,619.24 carats, are held in inventory. The company said it is doing so because it has a “strong cash position,” at a time of low rough diamond prices.
The remaining 1,997.94 carats were sold at an average price of US$6,762.76 per carat, generating revenue of $16.2 million.
In the nine month period, Rockwell met a number of hurdles, most related to problematic power supply from the South African company Eskom. These include lost of work time when power was down, cost of purchasing generators and steep increases in diesel, oil and lubricant costs.
Other issues included a labor dispute that caused the loss of 35 percent of budgeted carat production in the second quarter.
Rockwell is focused on mining alluvial diamond deposits, mainly deposits which have consistently yielded high value gemstone diamonds. Plus 2-carat stones comprise more than 65 percent of the company's production.