Rockwell Diamonds Inc. announced second quarter fiscal 2013 revenues of $6.8 million from the sale of 5,147 carats of rough diamonds before beneficiation. The quarterly sales achieved an average of $1,322 per carat.

 

Revenues were down 3 percent compared to the $7 million that was realized over the same period last year were up 16 percent over the $5.9 million that was realized in the previous quarter.

Total proceeds of US$6.8 million were generated from the sale of 5,147 carats at an average price per carat for the quarter of US$1,322 compared to US$7.0 million for the same period last year and US$ 5.9 million for the previous quarter. The quarter-on-quarter increase is underpinned by the 30 percent jump in output that offset an overall lower per-carat price.

“Our second quarter diamond sales improved, reflecting further delivery on our strategic objectives which include optimizing our productive mines and leveraging our production profile by developing new assets,” said Rockwell CEO James Campbell. Referring to one of the company’s mines, Campbell added, “Klipdam showed a 72 percent year-on-year increase in carats sold during the second quarter, translating into a 45 percent increase in revenue from diamond sales.”

Referring to its other mines, he went on to say, "The quality and average diamond value of the stones that we recovered in August from the newly acquired Jasper Project matched Saxendrift’s typical production profile. This encouraging result expands our options for the Saxendrift complex, indicating the potential to increase its economic life. We are also in the final stages of right-sizing Tirisano. The rationalized processing plant at Tirisano has now been integrated into the new wet front-end, in order that the mine can recover higher quality stones and make a positive contribution to our bottom line.”

Regarding the diamond market, Campbell commented: “Rough and polished diamond prices corrected to more realistic levels during the quarter under review, and market activity was much healthier, compared to the same period in 2011 where trading was muted. We believe that the overall market fundamentals are more positive than they have been since 2008, which will be beneficial for diamond prices.”

The company continued to produce large stones at all its operations during the second quarter with the recovery of 50 stones exceeding 10 carats that include 14 over 20 carats, one 96.56 carat fancy yellow clean sawable. These stones were channeled into the Company’s beneficiation joint venture with Steinmetz Diamond Group, which delivers value added revenues for Rockwell’s stones that are larger than 2.8 carats.