Rockwell CEO
and president
James Campbell.
 
Johannesburg, South Africa — 10 July 2013

Rockwell Diamonds Incorporated has announced what it describes as “a pleasing 31% increase in revenue from diamond sales for the first quarter of fiscal 2014 compared to the same period last year

 Revealing this in a statement issued here, the company pointed out that this increase over the same quarter last year occurred even though it had placed its Tirisano mine onto care and maintenance late in 2012 and had sold its Klipdam mine early in the quarter.

As a result of sales of high quality diamonds, Rockwell’s flagship Saxendrift mine achieved a 48% year-on-year increase in average price per carat received, with the value of sales up 56% year-on-year in the first quarter, the statement added. In addition, the first diamond sales from the newly-commissioned Saxendrift Hill Complex were recorded, at an average price per carat of US$3,668 from the sale of 130 carats. Royalties to the company in the first quarter totalled US$134,749 on diamond sales by the three royalty mining contracts at Tirisano on revenue of US$1.1 million.

Total revenue of US$6.6 million was recorded for Rockwell’s own operations (excluding royalty mining contracts) from the sale of 3,257 carats at an average price of US$2,018 per carat, compared to US$5.0 million at an average value of US$962 for the same period in fiscal 2013.

Total carats sold from its own operations declined by 38% from 5,229 carats as the company transitioned its production focus exclusively to operations in the Middle Orange River region which typically yield gem-quality diamonds. The sale of several large, high-valued diamonds recovered in this region contributed to the 109% increase in average price per carat from a year ago.

Rockwell continued to produce large stones at all operations, including the recovery of 44 stones exceeding 10 carats and up to 72.41 carats during the first quarter, the statement continued.

“The high quality of diamond sales for the first quarter provides further justification of our strategy to focus Rockwell’s production growth to high potential assets in the Middle Orange River region,” commented CEO and president James Campbell.

Source: Rockwell Diamonds. For more information, click here.