With production delayed by development work at its three South African diamond mines, Toronto-based Rex Diamond Mining (RXD-T) suffered a loss of US$200,000 for the nine months ended Dec. 31, 1996, compared with earnings of US$355,000 for roughly the same period in 1995.
Revenue between the two periods dropped to US$6.9 million from US$7.8 million.
Rex produces gem-quality diamonds from three underground fissure mines in South Africa: 100%-owned Bellsbank, 88 km northwest of Kimberley; 84%-owned Ardo, 70 km northwest of Kimberley; and 84%-owned Rex, 275 km southwest of Johannesburg. The company also owns sorting and marketing facilities in Antwerp, Belgium. It sells its diamonds for about US$240 per carat.
At both Bellsbank and Ardo, grades improved during the third quarter to 14.78 carats per 100 tons from 10.77 carats in the second quarter.
Through its exploration division, Rex continues to search for alluvial diamonds in Namaqualand, South Africa, and at the Kono, Zimmi and Tongo Fields concessions in Sierra Leone, West Africa.
Administration expenses increased by US$655,000 during the second quarter of 1996, when Rex amalgamated its South African offices into new headquarters in Johannesburg.
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