Rockwell Diamonds has posted improved financial performance for the first quarter of the 2012 fiscal year, which ended May 31, 2011, despite an almost 40% drop in diamond production due to unusually heavy rains.



The diamond company's total revenue remained stable at C$8.5 million, while beneficiation revenue from Rockwell's joint venture with Steinmetz trebled to reach $943,842.

Rockwell reports a gross profit of C$500,000; operating loss of C$1.2 million; and a 19% reduction in general expenses.



Rockwell produced a total of 4,428 carats of rough diamonds during the quarter. While the quality of the ore grade recovered at the Saxendrift mine decreased by 42%, the high-quality stones yielded by the mine achieved an average per-carat value of US $2,686 – a 10% increase.



Overall, diamond prices continued strong in the quarter, with the company seeing an average per carat price of US$1,631.