| Wed 8 Oct 2008, 14:30 | | RDI - Rockwell Diamonds Incorporated - Rockwell receives premium price for |
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RDI
RDI
RDI - Rockwell Diamonds Incorporated - Rockwell receives premium price for
189.68 carat stone: us$10,291,050 successfully completes September 2008 diamond
sale
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: 77434W103
Share code on the OTCBB: RDIAF
("Rockwell")
ROCKWELL RECEIVES PREMIUM PRICE FOR 189.68 CARAT STONE: US$10,291,050
Successfully completes September 2008 diamond sale
October 8, 2008. Vancouver, B.C. - Rockwell Diamonds Inc. ("Rockwell" or the
"Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) reports on the successful sale of
its large 189.68 carat white stone and the sale of run-of-mine production for
the period June 1st to August 31st 2008 representing the Company`s second
quarter fiscal 2009 operating period.
The sale of the latest large stone (189.68 carats) recovered from the Klipdam
mine realized a price of US$10,291,050 which equates to a value of US$54,255 per
carat. Concurrently with the sale of the 189.68 carat white stone, the Company
also realized US$4,928,166 for the sale of 3,945.84 carats of run-of-mine
production from its Wouterspan, Holpan, Klipdam and Saxendrift operations.
The Company realized total revenue of US$15,219,216 from its latest diamond
sale, representing an average price of US$3,680 per carat for the latest sale
results. The Company`s average sale price for the first two quarters of fiscal
2009 now stands at US$2,491 per carat.
President and CEO John Bristow stated "We are particularly satisfied by the
outstanding price of US$10,291,050 or US$54,255 per carat achieved for this
latest large stone of over 100 carats, the fourth for the year, recovered from
the Klipdam operation. This exceptional sales price is most encouraging
especially in the context of the turbulence in international capital markets and
indications that this is impacting on world diamond prices.
Following from these excellent latest diamond sales results for production for
the period June 1st to August 31st 2008, during September the Company achieved
strong production results at operating costs which are far lower costs than
those experienced during our previous quarter. Our strong September production
reflects the positive resolution of the industrial action and is testament to
our focus on across the board mining and production improvements to ensure
sustainable long-term cost savings and reduced unit costs. The strong decline
in oil prices and declining steel prices should provide further benefit to the
Company is terms of lower operating costs".
Run-of-mine diamond production during the period June 1st to August 31st 2008
was 4,266.27 carats, representing approximately 65% of budgeted production.
Loss of production was due to industrial action during July and August which was
reported in previous Company news releases. Operating cash costs for this
period (exclusive of Saxendrift costs) were US$4.65 per tonne, reflecting lower
than normal throughput due to industrial action. Operating costs inclusive of
Saxendrift were US$5.62 per tonne. September cash operating costs are forecast
to be lower than US$4.00 per tonne.
Rockwell realized total revenue of US$4,928,166 for the sale of run-of-mine
production of 3,945.84 carats which together with the sale of the large stone
realized revenue of US$15,219,216.
There was strong interest in the Rockwell sale reflecting continued high demand
for Rockwell rough diamonds. Sales details for production from the individual
operations are tabulated below.
Average prices achieved for the different operations were in line with the
overall qualities of goods offered up for sale and in all cases the reserve
prices were met. Saxendrift production was primarily from lower grade middlings
gravels with a lower average diamond size than for June production and this is
reflected in lower average price compared to previous sales results. Some
softening of prices of smaller and intermediate sized goods in line with
seasonal trends, the removal of speculative premiums experienced at the start of
this year, and softer international prices were also apparent in the sales
results.
OPERATION SALES AVERAGE PRICE
(CARATS) (US$ PER CARAT)
Wouterspan 704.15 1,624
Holpan 670.82 965
Klipdam 1,630.63 7,102
Saxendrift 1,129.92 1,634
Total 4,135.48 $3,680
The distribution of diamonds larger than 10 carats sold in this latest sale by
Rockwell was as follows:
- 25 stones of 10 - 20 carats
- 11 stones of 21 - 30 carats
- 2 stones of 31 - 40 carats
- 2 stones of 41 - 50 carats
- 1 stone of 50 - 60 carats
- 1 stone of 60 - 70 carats
- 1 stone of 100 - 200 carats
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. 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.
Canada
8 October 2008
Sponsor
Sasfin Capital (A division of Sasfin Bank Limited)
Date: 08/10/2008 14:30:01 Produced by the JSE SENS Department.
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