COMPANY COMMENT: Rockwell Diamonds; Clarkbiz & Uvundlu Investments
READING Rockwell Diamonds’ latest market update, you get a sense of the company grappling with a large, unwieldy and uncooperative beast that is just not responding in the way management wants it to.At the heart of the matter is the nature of the deposit Rockwell has chosen to focus on to find diamonds. Alluvial diamonds are found in ancient riverbeds and it takes sophisticated geological mapping and interpretations of events that happened millions of years ago to find diamonds.Rockwell’s update outlines its difficulties, which include a tough global market for diamonds. Rockwell is shutting its Johannesburg head office and shifting management to the mines between Douglas and Prieska in the Northern Cape, saving R8m a year.It is laying off an unspecified number of employees.Rockwell is bringing in two groups to mine its Saxendrift deposit on a royalty basis as it turns its attention to newer assets, with largely untouched resources.Rockwell will stop mining at Saxendrift next month ...
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