| Mon 26 Sep 2011, 14:53 | | RDI - Rockwell Diamonds Incorporated - Diamond sales update |
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RDI
RDI
RDI - Rockwell Diamonds Incorporated - Diamond sales update
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: CA77434W2022
Share code on the TSX: RDI CUSIP Number: 77434W103
Share code on the OTCBB: RDIAF
ROCKWELL`S LATEST DIAMOND SALES REFLECT CONTINUED PRICE STRENGTH
September 26, 2011, Vancouver, B.C. - Rockwell Diamonds Inc ("Rockwell"
or the "Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) announces the
results of second quarter sales of its diamond production from South
African operations.
Total proceeds of $7.0 million were generated from the sale of 3,223
carats. The average price per carat for the quarter was USD $2,187,
demonstrating the high quality of stones sold.
Operation Carats US $ Revenue US $/ct
Holpan 27 $4,755 $176
Klipdam 1,456 $1,500,506 $1,030
Saxendrift 1,740 $5,542,268 $3,186
Total 3,223 $7,047,529 $2,187
Recovery and beneficiation of notable stones:
Production across the Company`s operations, which was disappointing in
June and July 2011, recovered strongly in August 2011. In particular, 373
carats were recovered at Rockwell`s Saxendrift mine on August 2, 2011
which was a daily record at the mine. Large stones produced by each of
the operations during the second quarter are as follows:
- Klipdam produced 14 stones exceeding 10 carats; and
- Saxendrift produced 32 stones weighing more than 10 carats, of which 11
stones exceeded 20 carats
These stones have been passed into the Company`s beneficiation joint
venture with the Steinmetz Diamond Group which delivers value added
revenues for Rockwell`s stones that exceed 2.8 carats.
During the quarter the high quality stones sold through the beneficiation
joint venture with Steinmetz Diamond Group, included the following:
- a 128.67 carat perfect saw-able; fancy yellow with high clarity stone;
- a 21.52 carat gem quality; clean D/E colour stone;
- a 33.51 carat octahedral, clean, H/I coloured stone; and
- a 179.95 carat makeable, clean brown coloured stone.
Further details pertaining to the beneficiation revenues will be
disclosed with the second quarter earnings announcement which will be
made on or about October 17, 2011.
Rough Diamond Market:
Although prices remain strong overall, the diamond market has been
impacted by uncertainty in the financial markets in the second quarter of
fiscal 2012. During June and July 2011, prices for both rough and
polished diamonds increased, as higher pricing in the downstream industry
was led by speculative activity. Producers followed suite, with rough
prices achieving all time record levels at the end of July 2011, leading
into the summer vacation period. Polished prices continued to rise, but
the pace remains slower than for rough diamonds, resulting in the
continued disconnect between the cost of rough diamonds and polished
prices.
As global financial markets corrected in August 2011, diamond traders
were left holding expensive inventory in uncertain markets. By the end of
August, prices had corrected but are expected to stabilize following the
Hong Kong diamond show and the next De Beers sight later this month.
Commenting on the latest diamond sales, James Campbell, CEO, Rockwell
said:
"We are pleased that the high quality of our current production has
supported higher selling prices. While the underlying diamond market has
increased by some 25% per carat for diamonds such as those typically
produced by Rockwell in the past twelve months, our average price for the
quarter has more than doubled. This is a clear demonstration that the
diamonds which we have presented for sale are of a superior quality and
in high demand."
"At the end of August, Rockwell focused its sales on larger diamonds
through our beneficiation JV which benefits from Steinmetz`s ability to
manufacture to achieve value of polished product. We had been
anticipating the short term price consolidation that has occurred in
August 2011. Our products were not sold at a discount to drive sales."
"We produced 46 stones exceeding 10 carats from our two operational
mines, which included 11 rough stones weighing more than 20 carats. This
is an indication that our diamond value management focus, which
prioritises the production of quality tonnes, is starting to pay off."
For further information on Rockwell and its operations in South Africa,
please contact
James Campbell
CEO
+27 (0)83 457 3724
Stephanie Leclercq
Investor Relations
+27 (0)83 307 7587
About Rockwell Diamonds:
Rockwell is engaged in the business of operating and developing alluvial
diamond deposits, with a goal to become a mid-tier diamond mining
company. The Company has three existing operations, which it is
progressively optimizing, two development projects and a pipeline of
earlier stage properties with future development potential. Rockwell is
also at an advanced stage of completing the acquisition of the Tirisano
property.
Rockwell also evaluates merger and acquisition opportunities which have
the potential to expand its mineral resources and production profile and
would provide accretive value to the Company.
No regulatory authority has approved or disapproved the information
contained in this news release.
Forward Looking Statements
Except for statements of historical fact, this news release contains
certain "forward-looking information" within the meaning of applicable
securities law. Forward-looking information is frequently characterized
by words such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate" and other similar words, or statements that
certain events or conditions "may" or "will" occur. 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 uncertainties and costs related to
exploration and development activities, such as those related to
determining whether mineral resources exist on a property; uncertainties
related to expected production rates, timing of production and cash and
total costs of production and milling; uncertainties related to the
ability to obtain necessary licenses, permits, electricity, surface
rights and title for development projects; operating and technical
difficulties in connection with mining development activities;
uncertainties related to the accuracy of our mineral resource estimates
and our estimates of future production and future cash and total costs of
production and diminishing quantities or grades if mineral resources;
uncertainties related to unexpected judicial or regulatory procedures or
changes in, and the effects of, the laws, regulations and government
policies affecting our mining operations; changes in general economic
conditions, the financial markets and the demand and market price for
mineral commodities such and diesel fuel, steel, concrete, electricity,
and other forms of energy, mining equipment, and fluctuations in exchange
rates, particularly with respect to the value of the US dollar, Canadian
dollar and South African Rand; changes in accounting policies and methods
that we use to report our financial condition, including uncertainties
associated with critical accounting assumptions and estimates;
environmental issues and liabilities associated with mining and
processing; geopolitical uncertainty and political and economic
instability in countries in which we operate; and labour strikes, work
stoppages, or other interruptions to, or difficulties in, the employment
of labour in markets in which we operate our mines, or environmental
hazards, industrial accidents or other events or occurrences, including
third party interference that interrupt operation of our mines or
development projects.
For further 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
26 September 2011
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 26/09/2011 14:53:02 Produced by the JSE SENS Department.
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