| Thu 12 Jun 2008, 15:00 | | RDI - Rockwell Diamonds Incorporated - Completes its fourth diamond sale of 2008 |
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RDI
RDI
RDI - Rockwell Diamonds Incorporated - Completes its fourth diamond sale of 2008
ROCKWELL DIAMONDS INCORPORATED
(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: CA77434W1032
Share code on the TSX: RDI CUSIP Number: 77434W1032
Share code on the OTCBB: RDIAF
("Rockwell")
ROCKWELL COMPLETES ITS FOURTH DIAMOND SALE OF 2008
Excellent margins on sales of stones manufactured in terms
of Steinmetz Joint Venture
June 12, 2008. Vancouver, B.C. - Rockwell Diamonds Inc ("Rockwell" or the
"Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) reports on its fourth diamond sale
in calendar 2008, completed on May 22, 2008.
The Company offered a total of 2,142.52 carats for sale, representing diamond
production for most of the month of April 2008 from the Wouterspan, Holpan and
Klipdam mining operations.
Rockwell realized total revenue of US$2,555,471 for this sale, representing an
average price of US$1,192 per carat. Sales details from production from the
individual operations are tabulated below. Rockwell receives 74% of the
revenues from the sale of the diamonds from these operations.
OPERATION SALES AVERAGE PRICE
(CARATS) (US$ PER CARAT)
Wouterspan 475.92 1566
Holpan 680.72 1500
Klipdam 985.88 800
TOTAL 2142.52 1192
As was the situation for its previous diamond sales, prices achieved for the
diamonds sold in the latest (May) tender showed strength in all categories. Top
prices of US$26,161 per carat and US$10,193 per carat were achieved on 20.09
carat and 12.45 carat stones from Holpan and Wouterspan, respectively.
The distribution of diamonds larger than 10 carats sold in this latest sale by
Rockwell was as follows:
- 10 stones of 10 - 20 carats
- 8 stones of 21 - 30 carats
- 1 stone of 30 - 40 carats
- 1 stone of 115 carats of boart (industrial diamond) quality
During May 2008, two of the Company`s diamonds that were manufactured and sold
in respect of the Steinmetz Diamond Group joint venture were sold. Margins of
10% and 17% over and above the original rough diamond sales prices were achieved
by Rockwell on these two stones.
Diamond production in this period was achieved at an operating cost of
approximately US$3.60 per tonne.
President and CEO John Bristow noted "The prices achieved are indicative of the
on-going strong demand for Rockwell goods. Although the overall prices realized
were somewhat lower than past sales, the prices achieved were in line with the
qualities sold. Had the 115 carat diamond sold in the latest sale not been a
poor quality boart (industrial) stone, the overall average sale price would have
been much higher.
Most encouraging were the margins realized on the two cut and polished stones
manufactured and sold via the Steinmetz joint venture. With a number of stones
now in the joint venture pipeline, we are expecting the real benefits of this
added value process to come through."
For further details on Rockwell Diamonds Inc., please visit the Company`s
website at www.rockwelldiamonds.com or contact Investor Services at (604) 684-
6365 or within North America at 1-800-667-2114.
John Bristow
President and CEO
No regulatory authority has approved or disapproved the information contained in
this news release.
Forward Looking Statements
This release includes certain statements that may be deemed "forward-looking
statements". Other than statements of historical fact all statements in this
release that address future production, reserve or resource potential,
exploration drilling, exploitation activities and events or developments that
each Company expects are forward-looking statements. Although the Company
believes the expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially from those
in the forward-looking statements. There is no certainty of the financing
completing. Factors that could cause actual results to differ materially from
those in forward-looking statements include market prices, exploitation and
exploration successes, changes in and the effect of government policies
regarding mining and natural resource exploration and exploitation, availability
of capital and financing, geopolitical uncertainty and political and economic
instability, and general economic, and market or business conditions. Investors
are cautioned that any such statements are not guarantees of future performance
and that actual results or developments may differ materially from those
projected in the forward-looking statements. For more information on Rockwell,
Investors should review Rockwell`s annual Form 20-F filing with the United
States Securities and Exchange Commission www.sec.com and the Company`s home
jurisdiction filings that are available at www.sedar.com.
Johannesburg
12 June 2008
Sponsor
Sasfin Capital
(A division of Sasfin Bank Limited)
Date: 12/06/2008 15:00:01 Produced by the JSE SENS Department.
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