ROCKWELL DIAMONDS: Between a rock and a hard place
As the company fights off liquidation, its hopes depend largely on its attractive but complex Wouterspan project
Prospects of Rockwell Diamonds getting back on its feet are dim, even with the best management. Not only does it face the threat of liquidation or business rescue, but the legal process is presenting a time-consuming distraction for management just when the focus should be on making the best of its last remaining productive asset.Rockwell’s problems mounted last year after the closure of its Saxendrift operations as a result of falling grades, closure of its unsustainable Remhoogte/Holsloot project and the resignation of the CFO and CEO.In November the contractor building the Wouterspan wet plant, C-Rock Mining, started a legal process to recover money it was owed. Last month it was granted an interim liquidation order against three Rockwell companies: HC van Wyk Diamonds, Saxendrift Mine and Rockwell Resources RSA.Within four days Rockwell’s shares on the JSE dropped 19c to 40c. They were suspended from trade at the company’s request on April 4. Last week Rockwell said it had appli...
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