TORONTO (miningweekly.com) – South Africa-focused alluvial diamond miner Rockwell Diamonds on Thursday reported a net loss of $1.5-million for the second quarter ended August 31, despite lifting revenue for the period by 71% year-on-year to $16.9-million, comprising $14.2-million from diamond sales and beneficiation income of $2.7-million.
The Johannesburg-based miner, with shares listed on both the TSX and JSE, reported that its ninth successive quarter of dollar-denominated revenue growth was underpinned by record overall gravel volumes processed and carat output from all its properties, which was up 57% and 36% year-on-year, respectively.
The firm reported operating profit before amortisation and depreciation of $1.2-million.
Rockwell reported net cash flow from operating activities of $2.1-million.
The net loss compared with first-quarter net profit of $0.3-million and an essentially similar net loss of $1.44-million in the same period last year. The miner highlighted that higher revenue and lower unit costs, offset by lower beneficiation income and lower grades, resulted in a $3.4-million inventory adjustment to net realisable value.
The average operating cost a cubic metre declined 22% from the first quarter to $10.30, led by an earthmoving-vehicle renewal plan and increased volumes.
The company said it had a current inventory of 5 954 ct carried forward, including 3 034 ct on royalty mining contracts. During the quarter, royalty mining contracts at Tirisano delivered net royalties of $523 000.
Rockwell noted that beneficiation revenue through the beneficiation profit-share agreement with Diacore (previously Steinmetz Diamond Group) could potentially rise owing to a significant 'beneficiation pipeline' of about 6 000 ct.