Rockwell Diamonds Incorporated has released its results for the three months ended May 31, 2014. Rockwell holds a current market cap of R214m, and is listed in South Africa and Canada. Its share price is up 24.6% on the year.
Features of first quarter fiscal 2014:
- Net profit of C$345,000 reported in first quarter compared to a loss of C$1.2 million in the prior year
- First quarter revenue increased 67% year-on-year to C$15.1 million, comprising C$9.7 million from diamond sales and beneficiation income of C$5.4 million (including the sale of a 109 carat polished vivid yellow diamond)
- Eighth successive quarter of dollar denominated revenue growth reported
- Overall volume of gravel processed and carat production from all company-owned properties up 26% and 90% year-on-year, respectively
- Operating profit before amortisation and depreciation of C$4.2 million, up from C$1.1 million in the prior year
- Net cash flow from operating activities of C$1.1 million, compared to cash utilised of C$3.0 million in prior year
- Inventory of 5,237 carats carried forward (includes 2,271 carats on royalty mining contracts)
- Additional revenue potential underscored by ‘beneficiation pipeline’ of more than 6,300 carats
- Royalty mining contracts at Tirisano deliver net royalties of US$312,576
Commenting on the first quarter performance of Rockwell, James Campbell, CEO and President said, “We are pleased to report that Rockwell showed a bottom line net profit of $345,000 in the first quarter. This is a first, as well as a significant achievement after three years of rebuilding Rockwell. These results also represent the eighth successive quarter of US dollar denominated revenue growth, highlighting the consistent delivery against our plan, which saw our exit from loss-making operations and the resolution of a number of corporate legacy issues.”
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