Miner Rockwell Diamonds reports that gross diamond revenues in the second fiscal quarter that ended August 31 were US$7.4 million compared to US$6.0 million in the first quarter.

The miner also says that it had seen quarter-on-quarter increases of 30 percent in production and 40 percent in average price per carat value to US$1,322. The firm posted a net loss of US$2.4 million in the three-month period.

Revenue from beneficiation activities were just US$400,000 since revenues had been delayed in the second quarter "due to particularly quiet northern hemisphere summer trading activity."

Rockwell says that during the second quarter it had mostly concentrated on driving efficient mining procedures at its ?Saxendrift and Klipdam operations. The majority of its losses was due to the Tirisano mine, which was temporarily closed in mid-July to implement a right sizing plan.

The company is working on a fourth mine, Saxendrift Hill where production is due to begin by March 2013.

Rockwell reports that it continues to make progress towards its key corporate objectives of increasing its monthly production of high-quality gemstones to 10,000 carats within five years.

Rockwell notes that the longer-term supply and demand fundamentals for gem quality investment stones, comprising most of Rockwell's production, remains positive. "Although the market has experienced price declines for smaller diamonds, the +2 carat segment of the market that represents some 80 percent of Rockwell's production, is expected to be price stable for the remainder of the year."