Rockwell Diamonds Inc. (TSX: T.RDI, Stock Forum) said second quarter fiscal 2013 revenues from diamond sales before beneficiation, which were down 3% compared to the same period last year, increased by 16% from the previous quarter.
Total proceeds of US$6.8 million were generated from the sale of 5,147 carats at an average price per carat for the quarter of US$1,322 compared to US$7.0 million for the same period last year and US$5.9 million for the previous quarter.
According to the press release, the quarterly increase is underpinned by the jump in carats that was led by the company's diamond value management, reflecting a quarter-on-quarter increase of 30%.
Specifically, the Klipdam mine achieved a 72% increase in carats sold, averaging revenue per carat of US$869. This compares favorably to the average carat value of US$550 in the previous three months and is the result of recent mining in the paleaochannel unit that yielded larger, higher quality diamonds.
"Rough and polished diamond prices corrected to more realistic levels during the quarter under review, and market activity was much healthier, compared to the same period in 2011 where trading was muted,” said James Campbell, CEO. “We believe that the overall market fundamentals are more positive than they have been since 2008, which will be beneficial for diamond prices."
The company continued to produce large stones at all its operations during the second quarter with the recovery of 50 stones exceeding 10 carats.
These stones were channeled into the company's beneficiation joint venture with Steinmetz Diamond Group, which delivers value added revenues for Rockwell's stones that are larger than 2.8 carats.
Rockwell is engaged in the business of operating and developing alluvial diamond deposits, with a goal to become a mid-tier diamond production company.
On Monday, Rockwell’s stock was up 5% and was trading at $0.315 a share. The company has a market cap of $15.25 million, based on 48.4 million shares outstanding. The 52-week high and low was $0.70 and $0.22 respectively.