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Northland Capital Partners View on the City: Rockwell Diamonds, Keras Resources

Northland Capital Partners View on the City: Rockwell Diamonds, Keras Resources

Rockwell Diamonds (TSX:RDI) – CORP: Q117 results
Market Cap: CAD$5mm; Current Price: 9c

Q117 sees significant improvement in operational performance
 Volumes processed in Q117 totalled 865,000m3 up 10% compared to 788,000m3 in Q116, and also up 10% compared to 789,000m3 in Q416.
 Carats produced totalled 5,688cts in Q117 up 88% from 3,025cts in Q116, and up 20% from 4,726cts in Q416.
 The average price per carat was US$1,801/ct in Q117 up 26% from US$1,432/ct in Q116, and up 24% from US$1,448/ct in Q416.
 As a result of the improved production levels and diamond prices, revenues totalled US$9.3m in Q117 up 40% from US$6.7m in Q116, and up 31% from US$7.1m in Q416.
 Mining operations moved to contractor mining from May.
 Construction at Wouterspan remains on track for August 2016.

NORTHLAND CAPITAL PARTNERS VIEW: Q117 has seen an improved operational performance by Rockwell Diamonds and was largely due to enhancements at the Remhoogte-Holsloot Complex Project that outweighed the wind down of operations at the Saxendrift Project. Rockwell had a difficult 2016 but has made large strides forward in the first financial quarter of the Company’s year-end. The return of production at Wouterspan should further strengthen the Company’s operations as it looks to reach its target of processing 500,000m3 of gravel per month.

Keras Resources (LON:KRS) – CORP*: Prince of Wales update
Market Cap: £12m; Current Price: 0.9p

Drill results including 3m at 14.64g/t Au and 3m at 7.25g/t Au

Keras Resources reports the results of its reverse circulation drill programme from the Prince of Wales project, located on the Grants Patch lease, with results including; 3m at 14.64g/t Au from 66m (PWRC005) and 3m at 7.25g/t Au from 60m (PWRC002).
 Clean up of pit underway to allow the re-access of the decline. The Company expects to begin mining in Q416.
The Company will now commence a resource development programme using diamond drilling.

NORTHLAND CAPITAL PARTNERS VIEW: Keras Resources is rapidly advancing its underground Prince of Wales Project towards production in the next six months under its tribute agreement with Norton Goldfields. The project has a historic underground resource of 154,000t at a grade of 8g/t Au and the Company believes around 20,000t of high-grade mineralisation can be extracted from the previously developed Consols decline.


1. Northland Capital Partners Limited (“Northland”) acts as Nominated Advisor and/or Broker to the company.

2. Northland) and/or its affiliates companies do beneficially own 1% or more of any class of the issuer’s equity securities, as of the end of the month immediately preceding the date of issuance of the research report or the end of the second most recent month if the issue date is less than 10 calendar days after the end of the most recent month. 

3. The authoring analyst or any associate of the authoring analyst does maintain a long or short position in any of the issuer’s securities directly or through derivatives, including options or futures positions.

4. Northland, its affiliated companies, partners, officers, directors or any authoring analyst of Northland has provided services to the issuer for remuneration during the preceding 12 months other than investment advisory or trading services.

5. Northland or any of its affiliated companies has performed investment banking services for the issuer during the 12 months preceding the date of issuance of the report.  

6. A partner, director, officer, employee or agent of Northland or any of its affiliated companies is an officer, director, employee or advisor of the issuer.  Disclosures are applicable for all companies

7. The authoring analyst, or any associate of the authoring analyst, has viewed the material operations of the issuer. 

8. The authoring analyst, or any associate of the authoring analyst, received reimbursement for travel expenses.

9. Northland makes a market in the securities of this company.




This document is provided solely to enable clients to make their own investment decisions. It may therefore not be suitable for all recipients and does not constitute a personal recommendation to invest. It does not constitute an offer or solicitation to buy or sell securities or instruments of any kind. If you have any doubts about the suitability of this service, you should seek advice from your investment adviser. This document is produced in accordance with UK laws and regulations. It is not intended for any person whose nationality or residential circumstances may render its receipt unlawful.

The past is not necessarily a guide to future performance. The value of shares and the income arising from them can fall as well as rise and investors may get back less than they originally invested. The information contained in this document has been obtained from sources which Northland Capital Partners Limited believes to be re¬li¬able. The Com¬pany does not warrant that such information is accurate or complete. All estimates and prospective figures quoted in this report are forecasts and not guaranteed. Opinions included in this report reflect the Company’s judgement at the date of publication and are subject to change without notice. If the investment(s) mentioned in this report are denominated in a currency different from the currency of the country in which the recipient is a resident, the recipient should be aware that fluctuations in exchange rates may have an adverse effect on the value of the investment(s). The listing requirements for securities listed on AIM or PLUS markets are less demanding, also trading in them may be less liquid than main markets.

Northland Capital Partners Limited and/or its officers, as¬sociated entities or clients may have a position, or other material interest, in any securities men¬tioned in this report. Northland Capital Partners Limited does not provide recommendations on securities of firms with which it has a corporate relationship. More information about our management of Conflicts of Interest, Investment Research Methodology & Definition of Recommendations can be found at 

Northland Capital Partners Limited is authorised and regulated by the Financial Conduct Authority and a Member of the London Stock Exchange.

Published by/copyright: Northland Capital Partners Limited, 2013. All rights reserved

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