Rockwell Diamonds, a mid-tier diamond mining and development company with operations in South Africa has reported higher losses in the quarter ended November 30, 2014 despite a revenue increase and lower operating costs. Revenue growth was up 59% to $18.9 million with rough diamond sales up 55% to $17.5 million as a result of a 127% improvement in carat sales to 13,759 carats.

However, average diamond prices realised declined 35% due to what the company described as “the low incidence of large diamonds across all our operations”. It also said that the market for polished diamond was sluggish, resulting in discounting in sales.

James Campbell, CEO and President said, “These results reflected a challenging quarter with a lower incidence of large stones. Despite this we achieved US$-denominated revenue growth for the tenth successive quarter on the back of an increase in carat sales.”

The company has taken a fresh look at its existing properties and will now complete rationalization of Saxendrift Hill Complex, including relocation of some of its assets to the other MOR properties, particularly Niewejaarskraal which will be a focus area for the coming period.

Rockwell has already announced acquisition of contiguous MOR alluvial diamond assets, expected to close in April 2015. “Our priority is now to build on past achievements through our recently announced acquisition which we believe will be the game changer we have been searching for,” said Campbell.

Note: All figures in this report are in Canadian Dollars

Photo Caption: Bulk X-Ray system at Niewejaarskraal