Rockwell Q2 Diamond Production up almost 50%

Royalty miners working at JSE- and TSX-listed Rockwell Diamond’s Tirisano operations have gained momentum, boosting the group’s carat output for the second quarter of the 2014 financial year.

Total carat production increased by 46% year-on-year in the quarter ended August 31, with the 3 497 ct delivered by royalty mining contractors operating at Tirisano offsetting the 25% lower 3 549 ct produced at Rockwell’s own operations at Middle Orange River.

"The second-quarter performance demonstrates that the royalty mining contractor initiative, as an interim measure to deliver value while assessing the future options of some of our noncore assets, has been a good one,” said Rockwell CEO and president James Campbell.

Production volumes were expected to increase further in the third quarter as a fifth contract came on-stream at Tirisano.

A 9% rise in carat sales, to 5 623 ct, at an average price of $1 512/ct, had also translated into a 25% increase in revenue to $8.5-million for the period under review.

An 84% increase in the average price per carat sold from Rockwell’s own operations had compensated for lower carat production and offset the impact of 47% lower carat sales at 2 656 ct, after the sale of the company’s Klipdam operation.

Revenue from the group’s own operations remained steady at $6.6-million during the quarter under review.�Sales from Tirisano mining contractors reached $1.9-million during the second quarter, of which 12.5%, or $236 600, accrued to the company.

Production at Saxendrift, comprising traditional Saxendrift and the recently acquired, higher-grade Saxendrift Extension gravels, achieved a 41% grade improvement and consistent revenue from rough diamond sales.

Sales from the new Saxendrift Hill complex mine produced an average value of $3 636/ct from the sale of several high-value diamonds.

"Saxendrift Hill complex [also] came on stream, making up for part of the production shortfall. Once Niewejaarskraal gets to full production, we are positioned to close the remaining production gap,” Campbell said.

http://www.miningweekly.com/article/rockwell-q2-diamond-production-up-almost-50-2013-09-25