JOHANNESBURG (miningweekly.com) – TSX- and JSE-listed Rockwell Diamonds would focus on unlocking its profit potential to supplement the capital it recently raised with internally generated cash resources, said chairperson Dave Copeland.

In a statement issued after the alluvial gem miner’s annual general meeting in Cananda on Friday, Copeland said that Rockwell was pleased with the progress that it had made in the last three months.

The company was now a more commercially aligned business, focused on diamond value management to generate profit, he said.

Rockwell also heightened its focus on resolving the funding issues with its black economic-empowerment partners, which have significant outstanding liabilities. “A favourable resolution to these negotiations would substantially improve Rockwell's cash position.”

The miner recently raised C$7.8-million in a private placement and received C$6.5-million from asset sales.

“The capital which has been raised will immediately be applied to value creating growth opportunities, in order to enhance cash generation with the focus on cash flow that will contribute to funding the longer-term growth objectives,” Copeland said.

Further, to capitalise on its South African roots, Rockwell Diamonds said it is actively engaging with the South African investment community to achieve a more representative ownership balance between the JSE and the TSX.

The majority of the company's shareholder support is currently through the TSX.

Meanwhile, Rockwell, which owns the Holpan-Klipdam, Wouterspan, Saxendrift and Niewejaarskraal projects, said it had made substantial progress at its mining operations in the second quarter of the 2012 financial year.

At Tirisano in the North West province, the first two streams will be ramping up to a monthly production of 90 000 m³ during the course of October. This would include the relocation of the Holpan recovery plant to Tirisano and expanding the existing front-end.

Having received the Section 11 cession from the Department of Mineral Resources, Rockwell’s focus was also on finalising the Tirisano transaction, which was expected to occur before the mine starts ramping up production.

Tirisano is a past producer that has been on care-and-maintenance since 2008.

At the AGM, Dr Mark Bristow, James Campbell, Copeland, Gary Wu, Dr Willem Jacobs, Richard Linnell and Sandile Zungu were re-elected as directors.
 

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