Rockwell Diamonds, the alluvial mining company that is listed in Toronto and Johannessburg, reported that it had reduced its average operating costs per cubic metre by 22%, and increased revenue by  71% year-on-year to $16.9-million for the quarter ended Aug 31, 2014. While $14.2-million from diamond sales, $2.7-million was generated from the beneficiation agreement it has with Diacore, formerly Steinmetz. This is the ninth consecutive quarter for which there has been a revenue rise.

The performance was based on a “record overall volume of gravel processed and carat production from all Company-owned properties; up 57% and 36% year-on-year, respectively”.

However, the company which had a net profit of $0.3-million during the previous quarter, reported a net loss of $1.5-million for the latest quarter as revenue was “offset by lower beneficiation income and lower grades, resulting in a $3.4 million inventory adjustment to net realizable value” and the fact that the revenue was boosted by “a 55 per cent increase in total sales from company properties”.

During this period, the company’s black economic empowerment transaction with African Renaissance Holdings to “acquire a 30% equity stake in its MOR operations lapsed due to the conditions precedent not having been fulfilled”.

Rockwell has now entered into a new vendor-financed BEE partnership with a BEE SPV comprising MIH Newco (70% holding in SPV) and an employee trust to be established for the benefit of the BEE employees of Rockwell RSA (30% holding in SPV).

James Campbell, CEO and President said that the company is well placed for the third quarter, having “migrated our mining activities to higher-grade areas” and “a higher level of confidence in our plant efficiencies.”

He added that Rockwell has reached a two-year 9% annual wage increase agreement with the NUM.