TORONTO (miningweekly.com) – Vancouver-based Rockwell Diamonds has posted a net loss of C$7-million for the 12 months ended February 28, compared with a C$13-million loss a year earlier.

Like other diamond producers, the company was hit by a sharp fall in diamond demand and prices from late 2008.

Prices have since recovered, although the real improvement was only in the latter part of Rockwell's 2010 fiscal year.

The company reported rough diamond sales of C$29,8-million for the period, compared with C$34,3-million a year earlier.

Rockwell, led by CEO John Bristow, produces high-value diamonds from three alluvial mines in South Africa - Holpan, Klipdam and Saxendrift - and has a fourth operation, Wouterspan, on care-and-maintenance.

The mines produced 24 915,9 ct during the 12 months ended February 28, while 26 532,4 ct were sold at an average price of $1 010,21/ct.

The firm reported an improved average operating cost across its three mines of $3,11/t, compared with $5,23/t in the previous financial year.

“Prices received for the company's diamond production increased progressively through the latter part of fiscal 2010 reflecting a strong recovery in international diamond prices following the sharp decline (50% on average) in the fourth quarter of fiscal 2009,” Rockwell said.

“The average price received in the fourth quarter of 2010 was $1 154 per carat, a substantial increase from the average price of $318,32 per carat in the fourth quarter of fiscal 2009.”

The firm ended the year with 1 909,66 ct of diamonds in inventory.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.