Mid-tier miner Rockwell Diamonds reports an increase in revenue from diamond sales by 57% to $13.2 million in the second quarter of 2014.
Total carat sales were up 58%, sold at an average price of $1 489 per carat, with an inventory of 5 954 carats carried over into the third quarter of fiscal 2015, reports the Southern Africa-focused miner. The increase in diamond sales came on the back of improved carat production, mining efficiencies and volumes, as reported in the company’s quarterly report ended 31 August, 2014.Diamond volumes
Volumes of material mined during the quarter increased 41% to 1.2 million m3, exceeding the one million cubic metre threshold per quarter for the first time, said Rockwell CEO and President James Campbell in a statement. The volume increases resulted in higher average stone size, which was in excess of 4.5 carats in the second quarter. Rockwell’s volume increases is a clear demonstration that Rockwell’s three producing Middle Orange River mines have gained critical mass, explained Campbell. Volumes of gravel processed increased 54% compared to the prior year.Cost reduction
Campbell says the company is now well placed to show a sustainable reduction in unit costs. Carat production rose 6%, due to higher volumes of ground processed, offset by lower grades, in the second quarter.This was in line with the typical cyclicality of alluvial mining and remained well within the long-term average grades for the region.
