Announcing its results for the three and twelve months ended February 29, 2016, Rockwell Diamonds Inc said that the reduction in operational losses to C$ 236,000 in Q4 F2016, (C$ 5.1 million: Q4 F2015) was a direct result of its recent strategic and operational review and subsequent restructuring.

For the quarter, rough diamond revenues dropped 35% C$ 10.2 million (Q4 F2015: C$ 15.6 million) and beneficiation revenue of C$ 0.2 million (Q4 F2015: C$ 1.5 million). Total revenues decreased 39% to $10.4 (Q4 F2015: $17.1 million), due to the exclusion of goods sourced from Tirisano contract miners, and a decline in the per carat value of goods from Saxendrift as this operation comes to the end of its economic life, the Company said.

It added that consolidated average cash operating costs for the fourth quarter at its Middle Orange River (MOR) operations was US$9.13 (Q4 F2015: US$11.2) per cubic metre processed. The average total cash cost (including royalty payments) for all the operations for Q4 F2016, amounted to US$12.83 per cubic metre processed (Q4 F2015: US$13.21).

For the financial year ended February 29, 2016, Rockwell reported revenue of C$ 47.3 million, 30% below the C$ 68.0 million of a year earlier. Rough diamond sales for the year stood at C$ 37.7 mn, or 34% below the C$ 56.9 mn for a year earlier.

The average price per carat sold during Q4 was down 6% to US$ 1,448 as against US$ 1,544 a year earlier, though it was higher than the US$ 1,328 realised in Q3. For the year as a whole average price per carat increased 12% to US$ 1,513 as compared to US$ 1,345 a year earlier.

James Campbell, CEO and President said: “This quarter concluded a year that saw Rockwell repositioning itself fundamentally by reducing overhead cost, selling the non-core Tirisano asset outright, completing the closure of NJK, bringing Saxendrift closer to closure and acquiring two new mines with a third in construction.

He added, “Looking at the year and the quarter, we recorded a significant improvement at a trading level. Our average cash operating cost continued to trend down by 18% to US$9.1 per m3 and improved carat recoveries over Q3 with better prices, coupled with the benefit of a weaker Rand, resulted in a reduction in operating losses in the quarter.”