Rockwell Diamonds’ production increases 83% in Q1’11

Tender sale realises increase in earnings
Rockwell Diamonds’ production increases 83% in Q1’11

Rough diamond production at Rockwell Diamonds Inc. increased 83 percent to 7,316 carats, during the first fiscal quarter of 2011 (ending 31 May 2010), from its production in the comparable quarter of last year. The company held one tender in Q1’11 and noted an increase in value of sales but a drop in volume. It sold 4,927 carats, as compared to 5,116 carats last year, earning $7.9 million, as compared to $2.8 million in comparable fiscal quarter last year. There was an appreciable rise in prices of better quality stones, with average price being $1,611.11 per carat. The company identified that its rough diamonds were sold at prices, comparable to those in the year 2008, an indication of the return of positive market sentiments.

The company’s total revenues, including profit sharing from its Steinmetz partnership was worth $8.2 million, rising 119 percent, as compared to the corresponding period last year. There was loss worth $29,029, which had reduced from $4.1 million worth of loss in first fiscal quarter of 2010. Accumulated losses are worth $49 million.

Assets exceeded current liabilities by $11.9 million, and total assets exceeded total liabilities by $85.9 million, reports say. Cash and cash equivalents were worth $8.6 million, bank indebtedness worth $2 million, net cash holdings of $6.6 million, working capital of $11.9 million, at the end of 31 May 2010.

Notable diamonds mined in the Q1’11 period: A 66-carat stone from the Holpan mine

124-carats and a 145-carats diamonds from Saxendrift mine, both of which are properties in South Africa. All three were sold under Rockwell's joint venture agreement with Steinmetz Diamond Group, to be manufactured and sold as polished goods.

The company is planning to focus on improved production in the time ahead, while paying attention to operating and costs structures.


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