| Mon 12 Jan 2009, 16:06 | | RDI - Rockwell Diamonds Incorporated - Rockwell operational update: |
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RDI
RDI
RDI - Rockwell Diamonds Incorporated - Rockwell operational update:
Restructuring underway
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 OPERATIONAL UPDATE:
Restructuring underway
January 12, 2009. Vancouver, B.C. - Rockwell Diamonds Inc. ("Rockwell" or the
"Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) announces an update on its
operational plans for early 2009.
Further to the previous announcement that the Company would be extending the
normal year-end shutdown to January 5, 2009, the Company has elected to extend
this shutdown period to the end of January 2009 as a consequence of continued
weakness in the diamond market. This decision follows a detailed review by
Management and the Directors of the Company of the prevailing static conditions
in the diamond market, cash flow projections, operational parameters and costs,
and technical factors such as grade characteristics of each mining operation.
Further to this review the Company is also planning to restructure its Middle
Orange River operations to reduce costs and increase production and
efficiencies.
The Wouterspan and Saxendrift operations are located near to each other on the
Middle Orange River. A new low cost, high volume plant was successfully
commissioned at Saxendrift in the latter part of 2008. Current plans are to
rationalize production at the two operations, focusing on ramping up production
at the new Saxendrift plant in February and suspending operations at the lower
grade Wouterspan operation until such time as a new high volume, low cost, twin
modular 18-foot pan plant is constructed and commissioned.
The proposed suspension of operations at Wouterspan is, unfortunately, likely to
result in the reduction of staff at this operation and to this end negotiations
have been initiated with the Company`s employees and the National Union of Mine
Workers, which is the labour organization representing the majority of the
Company`s employees. The longer term plan is to upgrade the Wouterspan plant as
described above and to then reinitiate mining and processing.
Maintenance and modifications for further cost savings (for example, replacement
of the de-sanding unit at Holpan with a simple, effective low cost degrit and
cyclone system) are on-going at all of the Company`s other operations, which are
scheduled to restart at the end of January.
President and CEO John Bristow stated "Global economic conditions have brought
diamond prices under pressure. In this environment, we continue to take steps to
improve operational efficiencies and maintain the competitiveness of the
Company. This has included the difficult decision to reduce our workforce.
Over the past twelve months the Company has successfully demonstrated
flexibility and ability to rapidly adapt to challenges which have included power
outages, spiraling fuel and steel costs, industrial action, and an unsolicited
offer for the Company. In spite of these challenges, the Company has achieved
profitability thereby setting itself apart from a number of its peers. We are
addressing these new market driven challenges and acknowledge the performance of
our employees in these tough times and, in particular, those likely to be
affected by the restructuring."
Financial results for the period ended November 30, 2008 are expected to be
published on or about January 14, 2009. The Company will host a telephone
conference call on Thursday, January 15 at 10:00 a.m. Eastern Time (7:00 a.m.
Pacific; 5:00 p.m. Johannesburg) to discuss these results. The conference call
may be accessed by dialing (877) 857-6173, or (719) 325-4788 internationally. A
live and archived audio webcast will also be available on the Company`s website
at www.rockwelldiamonds.com. The conference call will be archived for later
playback until midnight, Thursday January 22, 2009 and can be accessed by
dialing (888) 203-1112 in Canada and the United States, or (719) 457-0820 and
using the passcode 7449151.
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 40-
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
12 January 2009
Sponsor
Sasfin Capital (A division of Sasfin Bank Limited)
Date: 12/01/2009 16:06:01 Produced by the JSE SENS Department.
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