OTCPK:RDIAF - Post by User
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knicksmanon Apr 27, 2016 4:09pm
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Post# 24816970
Northland Capital Partners - Q4 Review
Northland Capital Partners - Q4 ReviewQ416 was a difficult period but new operations are poised for improvement
Gravels processed were down 40% to 789,000m3 in Q416 compared to 1,315,000m3 Q415, due to the change in operational profile. Grades were up 11% to 0.6cphm3 in Q416 compared to 0.54cphm3 in Q415. As a result, diamond recoveries were down 33% to 4,714cts in Q416 compared to 7,063cts in Q415.
The average realised price per carat was down 6% to US$1,448/ct in Q416 compared to US$1,544/ct in Q415. Carats sold were down 42% to 4,925cts in Q416 from 8,467 in Q415. As a result, revenue from diamond sales was down 45% to US$7.1m in Q416 from US$13.1m in Q415.
The closure of Saxendrift has been postponed until May 2016 from February 2016 due to a change in operational parameters. The imminent end of Rockwell’s mining activities at Saxendrift has necessitated an official restructuring process under terms of Section 189 of the South African Labour Relations Act.
The construction and commissioning of additional in-field screening capacity at the Remhoogte-Holsloot Complex is on track to research designed capacity of 180,000m3 of gravel per month.
The recommissioning of Wouterspan is expected to begin in Q117, the mine has a target production of 200,000m3 per month. A second phase to increase production to 400,000m3 is under consideration. The recommissioning of operations at Wouterspan is expected to absorb a large proportion of Saxendrift’s workforce and equipment.
NORTHLAND CAPITAL PARTNERS VIEW: As expected Q416 was a difficult period for Rockwell Diamonds due to the restructuring of its operational portfolio. The Company has undertaken extensive expansion plans at the Remhoogte-Holsloot Complex Mine and with the recommissioning of the Wouterspan mine expected to begin in this current quarter, the Company is positioned for improvement.