Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Canadian junior Rockwell Diamonds (TSX & JSE: RDI) reported today a 77% year-on-year increase in diamond production for the fourth quarter ended February 2012.
Saxendrift’s diamond production rose 50% year on year to 1,437 carats. Tirisano is expected to reach full production in late July 2012, but the company managed to record 535 carats from this property during the period. Klipdam’s production increased 57% to 2,050 carats.
James Campbell, Rockwell’s chief executive, defined the quarter as reasonable. ”Our priority for the quarter was the continued implementation of fit-for-purpose processing technology and active management of the mine plans at our three operational mines to achieve our production improvements with a continued focus on managing our costs. The next set of objectives that we have set ourselves is the commissioning and testing of the bulk x-ray plant at Saxendrift and the ramp up of Tirisano, both of which should impact positively on our business.”
The junior miner will continue to fine-tune operations and focus on medium- to long-term growth. ”Of particular significance is the acquisition of the Jasper mine, which is adjacent to Saxendrift and has the potential to extend the life of this mine. Work on re-optimizing the feasibility study for the Wouterspan mine using later and more applicable technology will start once the results from the Saxendrift bulk x-ray project are forthcoming,” he explained.
Rockwell Diamonds will report its fiscal 2012 financial results in May.
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