Rockwell Diamonds’ third quarter results boast revenue growth and improved operating profitability for the sixth successive quarter, showing the financial merits of the company’s strategy to focus on the Middle Orange River (MOR).
“We reported a sixth consecutive quarter of US$ denominated revenue growth, producing a second successive quarterly gross profit (after amortization and depreciation) of $1.3 million. Normal operations produced cash flow of $2.0 million (prior to working capital movements) and our net loss for the quarter narrowed to $0.4 million,” said James Campbell, CEO and President.
“We also remained on track to deliver on a number of strategic milestones towards our initial objective of processing 500,000m3 per month of quality gravels. Volumes processed from our three MOR mines increased 65% from a year ago, with our carat recoveries more than doubling as the average grade increased 27%, all of which are a direct impact of the MOR focus.”
Looking forward, Campbell says the company’s focus remains on our midterm objective of processing 500,000m3 per month of quality gravels, with tight operation and cost controls, in order to achieve consistent production and quarterly earnings.