Rockwell Diamonds has reported a 14 percent drop in revenue from diamond sales - up to $ 10.6 million in the second quarter of fiscal 2017 compared to $ 12.3 million in the same period a year earlier. Such decrease was mainly due to the reduction in diamond content and reduce their cost on projects Remhugte / Holsloot (Remhoogte / Holsloot) and Saksendrift (Saxendrift) in South Africa.
Revenue Group companies also declined due to the fall in revenue from the beneficiation by 67%, to $ 2.8 million, versus $ 8.7 million a year earlier.
Rockwell recorded a net loss of $ 600,000 compared to a profit of $ 1.2 million a year earlier.
Reducing the company determines the fall of production volume and content of the diamond in the rock, as well as the impact of lower prices and foreign exchange rates.
"Of Rockwell faced some significant challenges during the first half of the year and, in particular, in the second quarter of 2017 fiscal year The fall in production and quality of the ore led to lower revenues from the sale of diamonds than planned." - said the new CEO of Rockwell Diamonds Tyart Willems (Tjaart Willemse).
"This, combined with the reduction of the projected resources, especially in our work on Remhugte / Holsloot, has a negative impact on the economic outlook in contrast to the same period in the previous fiscal year. In the future, the business will not be the same as before" - he added.
As for the upcoming holiday season, as noted in the company, is expected to reduce the supply of diamonds by the Diamond Trading Company. Only a slight increase in sales for some items can be observed without a significant price change.
Demand for diamonds, according to the company, is expected to grow by the end of the year, which will help to reduce waste in the diamond industry.
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