Vancouver's Rockwell Diamonds Inc. (TSX:RDI) is extending its normal year-end shutdown to the end of January due to continued weakness in the diamond market.
The global economic downturn has reduced diamond prices, and Rockwell decided to extend its shutdown after reviewing the static conditions in the diamond market, the company's cash flow projections and operating costs.
In addition to the shutdown, Rockwell is planning to restructure its Middle Orange River operations to reduce costs and increase production. It plans to increase production at its new Saxendrift mine and suspend production at its lower grade Wouterspan operation until a new high-volume, low-cost plant is built at Wouterspan.
Rockwell posted a second quarter profit of $2.2 million for the period ending August 31, 2008, from $10.2 million in revenue. It will report its third-quarter results later this week.
Rockwell's share price range during the past week: between $0.07 and $0.08; 52-week high: $0.67; 52-week low: $0.025.