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Unaudited Interim Results for the period ended 31 August 2013
Rockwell Diamonds Inc.
(A company incorporated in accordance with
the laws of British Columbia, Canada)
(Incorporation number BCO354545)
(Formerly Rockwell Ventures Inc.)
(South African registration number: 2007/031582/10)
Share code on the JSE Limited: RDI
ISIN: CA77434W2022
Share code on the TSXV: RDI
CUSIP Number: 77434W103
("Rockwell")
Unaudited Condensed Interim Consolidated Financial Statements
for the period ended 31 August 2013
Consolidated Statements of Financial Position
As at As at
31 Aug 28 Feb
Amounts in Canadian Dollars 2013 2013
Assets
Non-current assets
Mineral property interests 28 313 892 31 405 358
Investment in associate 227 565 207 560
Property, plant and equipment 30 405 751 33 544 992
Other financial assets 4 832 871 4 888 415
Rehabilitation deposits 1 664 151 1 818 291
Total non-current assets 65 444 230 71 864 616
Current assets
Inventories 3 839 957 2 304 782
Loans to related parties 101 317 94 183
Current tax receivable 35 545 39 587
Trade and other receivables 5 961 780 5 850 618
Cash and cash equivalents 1 861 904 5 570 626
Total current assets 11 800 503 13 859 796
Total assets 77 244 733 85 724 412
Equity and liabilities
Equity
Share capital 146 856 807 146 862 257
Reserves (17 485 895) (11 874 763)
Retained loss (79 711 469) (77 478 322)
Total equity attributable to the
equity holders of the Group 49 659 443 57 509 172
Non-controlling interest (1 973 218) (2 137 472)
Total equity 47 686 225 55 371 700
Liabilities
Non-current liabilities
Loans and borrowings 3 743 163 3 889 684
Finance lease obligation 140 578 281 029
Deferred tax 5 916 171 6 543 184
Rehabilitation obligation 7 619 375 6 992 157
Total non-current liabilities 17 419 287 17 706 054
Current liabilities
Loans from related parties 4 291 48 925
Loans and borrowings 1 293 400 1 314 807
Finance lease obligation 300 472 321 083
Trade and other payables 8 925 757 8 121 922
Bank overdraft 1 615 301 2 839 921
Total current liabilities 12 139 221 12 646 658
Total liabilities 29 558 508 30 352 712
Total equity and liabilities 77 244 733 85 724 412
Consolidated Statements of Comprehensive Income
3 months 6 months 3 months 6 months
Amounts ended ended ended ended
in 31 August 31 August 31 August 31 August
Canadian Dollars 2013 2013 2012 2012
Sale of diamonds 8 614 267 16 437 221 6 964 374 13 035 396
Beneficiation income 1 254 523 2 471 746 439 584 1 466 745
Production cost (7 335 768)(15 301 260) (7 204 106)(14 106 361)
Operating profit
before amortisation
and depreciation 2 533 022 3 607 707 199 852 395 780
Amortisation of
mineral property
interests (188 082) (380 868) (220 034) (473 441)
Depreciation of
property, plant
and equipment (1 103 244) (2 170 610) (1 715 753) (3 359 706)
Gross profit (loss) 1 241 696 1 056 229 (1 735 935) (3 437 367)
Other income 152 834 278 629 387 713 543 654
General and
administration
expenses (1 015 500) (2 285 909) (1 452 631) (2 966 562)
Rehabilitation
obligation
(recognised)
revised (1 157 682) (1 229 822) 15 718 (480 152)
Loss before net
finance costs (778 652) (2 180 873) (2 785 135) (6 340 427)
Finance income 85 579 253 841 159 894 229 087
Finance costs (197 448) (397 657) (186 301) (377 285)
Loss after net
finance costs (890 521) (2 324 689) (2 811 542) (6 488 625)
Share of profit
(loss) from equity
accounted investment 24 214 55 750 (8 074) 18 666
Loss before taxation (866 307) (2 268 939) (2 819 616) (6 469 959)
Taxation (577 512) (341 127) 408 533 1 024 970
Loss for the period (1 443 819) (2 610 066) (2 411 083) (5 444 989)
Other comprehensive
income (loss):
Exchange differences
on translating
foreign operations 118 355 (5 520 926) (1 756 264) (7 098 719)
Total comprehensive
loss for the period (1 325 464) (8 130 992) (4 167 347)(12 543 708)
Loss attributable to:
Owners of the Group (1 376 074) (2 553 782) (2 017 211) (4 141 894)
Non-controlling
interest (67 745) (56 284) (393 872) (1 303 095)
Loss for the period (1 443 819) (2 610 066) (2 411 083) (5 444 989)
Total comprehensive
loss attributable to:
Owners of the Group (1 257 141) (8 295 246) (3 819 655)(11 376 265)
Non-controlling
interest (68 323) 164 254 (347 692) (1 167 443)
Total comprehensive
loss for the period (1 325 464) (8 130 992) (4 167 347)(12 543 708)
Loss per share
Per share information
Basic and diluted
loss per share (cents) (2.81) (5.22) (4.17) (8.58)
Consolidated Statements of Changes in Equity
Amounts in Canadian Dollars
Share capital Foreign Share-
currency based
translation payment
reserve reserve
Balance at
1 March 2012 145 632 846 (10 451 664) 7 605 893
Loss for the year - - -
Other
comprehensive loss - (8 966 061) -
Total comprehensive
loss for the year - (8 966 061) -
Share-based payment
transactions - - 558 411
Debt conversion,
net of issue costs
at $0.48 per share 218 707 - -
Acquisition of non-
controlling interest 890 774 (621 342) -
Payment on conversion
of mineral right 119 930 - -
Total changes 1 229 411 (9 587 403) 558 411
Balance at
28 February 2013 146 862 257 (20 039 067) 8 164 304
Total comprehensive
loss for the period
Loss for the period - - -
Other
comprehensive loss - (5 741 464) -
Total comprehensive
loss for the period - (5 741 464) -
Share-based payment
transactions - - 130 332
Disposal of subsidiary - - -
Share issue costs (5 450) - -
Total changes (5 450) (5 741 464) 130 332
Balance at
31 August 2013 146 856 807 (25 780 531) 8 294 636
Amounts in Canadian Dollars
Total Retained Total
net loss equity
reserves attributable
to equity
holders
of the
Group
Balance at
1 March 2012 (2 845 771) (65 620 276) 77 166 799
Loss for the year - (10 900 533) (10 900 533)
Other
comprehensive loss (8 966 061) - (8 966 061)
Total comprehensive
loss for the year (8 966 061) (10 900 533) (19 866 594)
Share-based payment
transactions 558 411 - 558 411
Debt conversion,
net of issue costs
at $0.48 per share - - 218 707
Acquisition of
non-controlling
interest (621 342) (957 513) (688 081)
Payment on conversion
of mineral right - - 119 930
Total changes (9 028 992) (11 858 046) (19 657 627)
Balance at
28 February 2013 (11 874 763) (77 478 322) 57 509 172
Total comprehensive
loss for the period
Loss for the period - (2 553 782) (2 553 782)
Other
comprehensive loss (5 741 464) - (5 741 464)
Total comprehensive
loss for the period (5 741 464) (2 553 782) (8 295 246)
Share-based payment
transactions 130 332 - 130 332
Disposal of subsidiary - 320 635 320 635
Share issue costs - - (5 450)
Total changes (5 611 132) (2 233 147) (7 849 729)
Balance at
31 August 2013 (17 485 895) (79 711 469) 49 659 443
Amounts in Canadian Dollars
Non- Total
controlling equity
interest
Balance at 1 March 2012 (712 429) 76 454 370
Loss for the year (2 875 845) (13 776 378)
Other comprehensive loss 232 890 (8 733 171)
Total comprehensive loss
for the year (2 642 955) (22 509 549)
Share-based payment transactions - 558 411
Debt conversion, net of issue
costs at $0.48 per share - 218 707
Acquisition of non-controlling
interest 1 217 912 529 831
Payment on conversion of
mineral right - 119 930
Total changes (1 425 043) (21 082 670)
Balance at 28 February 2013 (2 137 472) 55 371 700
Total comprehensive loss
for the period
Loss for the period (56 284) (2 610 066)
Other comprehensive loss 220 538 (5 520 926)
Total comprehensive loss
for the period 164 254 (8 130 992)
Share-based payment transactions - 130 332
Disposal of subsidiary - 320 635
Share issue costs - (5 450)
Total changes 164 254 (7 685 475)
Balance at 31 August 2013 (1 973 218) 47 686 225
Consolidated Statements of Cash Flows
3 months 6 months 3 months 6 months
Amounts ended ended ended ended
in 31 August 31 August 31 August 31 August
Canadian Dollars 2013 2013 2012 2012
Cash flows from
operating activities
Cash receipts from
customers 10 573 321 18 036 084 8 688 024 16 699 556
Cash paid to
suppliers and
employees (6 976 209)(17 425 368) (8 065 209)(17 706 619)
Cash generated from
(used in) operations 3 597 112 610 716 622 815 (1 007 063)
Finance income 85 579 253 841 159 894 229 087
Finance costs (51 797) (347 034) (314 906) (377 285)
Tax paid - - 1 278 (40 623)
Net cash inflow
(outflow) from
operating activities 3 630 894 517 523 469 081 (1 195 884)
Cash flows from
investing activities
Purchase of property,
plant and equipment (3 423 805) (5 044 116) (1 631 687) (2 430 055)
Proceeds from sale
of property, plant
and equipment - 41 389 716 319 760 804
Purchase of mineral
property interests (6 706) (6 706) - -
Net asset disposal - 2 556 318 2 598 2 598
Net movement in
related party loans 10 862 (56 348) (276 285) (178 024)
Net movement in
other financial assets (167 813) (323 707) (157 140) (1 364 479)
Increase in
rehabilitation deposits (15 892) (31 502) (48 634) -
Decrease in
rehabilitation deposits - - - 926 709
Net cash outflow from
investing activities (3 603 354) (2 864 672) (1 394 829) (2 282 447)
Cash flows from
financing activities
Share issue costs - (5 451) - (5 293)
Repayment of
convertible loan (4 810) (4 810) (5 546) (5 546)
Net movement in
capital lease
obligations (79 236) (126 692) (78 596) (161 908)
Net cash outflow
from financing
activities (84 046) (136 953) (84 142) (172 747)
Net movement in cash
and cash equivalents
for the period (56 506) (2 484 102)(1 009 890) (3 651 078)
Cash and cash
equivalents at the
beginning of
the period 303 109 2 730 705 7 270 673 9 911 861
Total net cash and
cash equivalents
at end of the period 246 603 246 603 6 260 783 6 260 783
Loss per share
3 months 6 months 3 months 6 months
Amounts ended ended ended ended
in 31 August 31 August 31 August 31 August
Canadian Dollars 2013 2013 2012 2012
Basic and diluted
loss per share
Basic loss per share
Cents per share (2.81) (5.22) (4.17) (8.58)
Basic loss per share was calculated based on a weighted average
number of ordinary shares of 48 942 745 for the 3 months ended
31 August 2013 (3 months ended 31 August 2012: 48 409 413)
and 48 887 673 for the 6 months ended 31 August 2013
(6 months ended 31 August 2012: 48 290 210).
Reconciliation of loss for the period to basic loss
Loss for the period (1 443 819) (2 610 066)(2 411 083) (5 444 989)
Adjusted for:
Loss attributable
to non-controlling
interest 67 745 56 284 393 872 1 303 095
Basic loss
attributable to
owners of the Group (1 376 074) (2 553 782)(2 017 211) (4 141 894)
Diluted loss per share is equal to loss per share because there are
no dilutive potential ordinary shares in issue.
At 31 August 2013 and 31 August 2012 the impact of share-based
payment options were excluded from the weighted average number of
shares as the effect would have been anti-dilutive.
Basic and diluted headline loss per share
Headline loss per
share (cents) (2.81) (5.26) (4.86) (9.36)
Reconciliation between
basic loss and headline loss
Basic loss
attributable to
owners of the Group (1 376 074)(2 553 782) (2 017 211)(4 141 894)
Adjusted for:
Loss (profit) on
sale of property,
plant and equipment 535 (16 389) (335 464) (379 949)
Headline loss
attributable to
owners of the Group (1 375 539) (2 570 171)(2 352 675) (4 521 843)
Johannesburg
11 October 2013
Sponsor:
Sasfin Capital
(a division of Sasfin Bank Limited)
Date: 11/10/2013 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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