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Rockwell swings into quarterly profit

Rockwell Diamonds on Wednesday reported a profit of $570,000 (Canadian) for the first quarter of fiscal 2017 after a loss of $5.2 million in the equivalent quarter last year on the back of further operational improvements.

The diamond miner with listings in Toronto and Johannesburg reported last month that production and sales performance had been stabilised after a tumultuous final quarter of the previous financial period.

Rockwell said in a statement on Wednesday that fiscal 2016 had been a challenging time of change and restructuring. The miner said things were improving but noted that there were still some challenges ahead.

“Our substantially improved results for the first quarter of fiscal 2017 reflect the benefit of the strategic interventions of late fiscal 2016,” the statement said.

“Enhanced productivity on our operations has resulted in improved diamond recoveries and diamond values, which have translated into increased diamond revenues, on both a year-on-year and quarter-on-quarter basis.”

Total revenue for the first quarter of 2017 was $12.5 million, up from $9.2 million in the corresponding quarter last year. Rockwell said rough diamond revenues were up 41 percent year-on-year.

James Campbell, chief executive and president of Rockwell, said the company had begun fiscal 2017 with a significantly changed operational profile from a year ago.

He said enhanced productivity had resulted in improved diamond recoveries and diamond values, which had translated into increased diamond revenues on both a year-on-year and quarter-on-quarter basis.

“Niewejaarskraal has been placed on care and maintenance, Tirisano sold, Remhoogte-Holsloot (RHC) acquired and, against most expectations, Saxendrift is still in production, albeit at a reduced rate and grade,” Campbell said.

“Fiscal 2016 was a challenging time of change and restructuring. Our substantially improved results for the first quarter of fiscal 2017 reflect the benefit of the strategic interventions of late fiscal 2016.”

– African News Agency (ANA)

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