12
MODERN MINING
June 2014
MINING News
Rockwell Diamonds Inc, listed on the TSX
and JSE, has announced its results for the
year ended February 28, 2014. Rockwell is
focused on alluvial diamond mining in the
Middle Orange River area.
During the year revenue increased 39 %
year-on-year to C$45,2 million, comprising
C$41,1 million from diamond sales and
beneficiation income of C$4,1 million. The
overall volume of gravel processed and
carat production from all company-owned
properties was up 28 % and 27 % year-on-
year, respectively.
Commenting on the results, James
Campbell, Rockwell’s CEO and President,
said: “Our fiscal 2014 results are beginning
to reflect the operational turnaround of the
company and its core focus on the Middle
Orange River (MOR) region of South Africa.
Our revenue increased 39 % year-on-year
to C$45,1 million, underpinned by a 52 %
increase in diamond sales. These improve-
ments have been consistent each quarter
over the last two years, as we have now
reported seven consecutive quarters of
dollar denominated revenue growth.
Rockwell’s revenue up 39 % year-on-year
“Rockwell reported an operating mar-
gin before amortisation and depreciation
of C$6,0 million, compared to C$1,1 mil-
lion in the prior year. Economies of scale
as a result of operating exclusively in the
MOR also emerged, as production costs
for the year increased 25 % to C$39,2 mil-
lion, against the 52 % improvement in the
value of diamond sales. We believe that the
implementation of our earthmoving vehi-
cle upgrade programme should unlock
further benefits as we improve the fleet
overall utilisation to match our produc-
tion capacity and renew the equipment
to lower our maintenance expenses while
improving availabilities. Equally pleasing is
the positive cash flow from normal opera-
tions of C$3,7 million (prior to working
capital movements).”
Campbell said that from an operational
perspective, these results also show that
Rockwell’s MOR focus has gained trac-
tion. “During fiscal 2014, we delivered
two new mines, namely Saxendrift Hill
Complex (SHC) and Niewejaarskraal, both
funded internally from cash reserves, and
this more than doubled our MOR produc-
tion capacity to 340 000 m
3
per month,” he
said. “Having met our short-term target to
have three producing mines in the MOR,
our production profile is now more flex-
ible and sustainable. We are pleased too
that diamond quality and the frequency of
larger stones has improved as anticipated.
This included the recovery of 12 stones
between 50 carats and 100 carats and five
plus 100-carat rough diamonds in fiscal
2014, the largest of which was a 287‑carat
stone, the biggest stone recovered in
recorded history in the region.
“The second phase of the Niewe
jaarskraal mine was commissioned on
schedule at the end of fiscal 2014 and
its diamond production performance is
improving. At Saxendrift, the plant con-
tinues to operate consistently. Once we
implement the Earthmoving Vehicle (EMV)
renewal plan, the plant utilisation should
improve further.
“Looking forward, we remain firmly
focused on our medium term target to
process 500 000 m
3
per month of quality
gravels,” he continued. “We are conduct-
ing contiguous exploration of existing
resources at the Saxendrift Extension
property to increase the current life of
mine, further leveraging our invested
mining infrastructure at Saxendrift. We
also have a focused exploration and trial
mining programme at SHC to maximise
the resource potential and develop con-
tiguous areas. Mining at Niewejaarskraal,
where the processing rate approached
the monthly nameplate capacity of
100 000 m
3
at fiscal year-end, is aimed at
upgrading the inferred resource to the
indicated level. At the same time, we con-
tinue to review our options to bring the
Wouterspan property to fruition, with a
preference for an internally funded and
phased approach.”
The plant at Rockwell’s new Niewejaarskraal mine in the Middle Orange River region(photo: Arthur Tassell).
New Chief Executive Officer for Forbes Coal
Forbes &Manhattan Coal Corp (Forbes Coal)
has announced that Malcolm Campbell has
been appointed as CEO of the company
with effect from 1 May 2014.
Campbell is a Professional Certified
Mining Engineer with 25 years of indus-
try experience and prior, to joining the
company as Chief Operating Officer (COO)
in 2011, was COO for an exploration and
development joint venture operating in
Botswana. Prior to this, he spent more than
20 years with Anglo Coal, a wholly-owned
subsidiary of Anglo American plc.
He received his BSc in Mining
Engineering from the University of
Witwatersrand in 1985 and is currently
a member of the South African Institute
of Mining and Metallurgy and the South
African Colliery Managers Association –
having served on the Council for two terms.
Forbes Coal is a growing coal producer in
Southern Africa. It holds amajority interest in
two operatingmines through its 100% inter-
est in Forbes Coal (Pty) Ltd, a South African
company which has a 70 % interest in Zinoju
Coal (Pty) Ltd. Zinoju holds a 100 % interest
in the Magdalena bituminous mine and the
Aviemore anthracite mine in South Africa.
