| Wed 27 Jun 2012, 14:30 | | RDI -Rockwell Diamonds Incorporated - Rockwell provides feedback from first |
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RDI
RDI
RDI -Rockwell Diamonds Incorporated - Rockwell provides feedback from first
quarter diamond sales
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 TSXV: RDI CUSIP Number: 77434W103
Share code on the OTCBB: RDIAF
("Rockwell")
ROCKWELL PROVIDES FEEDBACK FROM FIRST QUARTER DIAMOND SALES
June 27, 2012 Vancouver, BC - Rockwell Diamonds Inc. ("Rockwell" or the
"Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) announces the results of its
diamonds sales for the first quarter of fiscal 2013.
Total proceeds of US$5.9 million were generated from the sale of 6,234 carats
at an average price per carat for the quarter of US$944. This includes the
sale of 1,005 carats from the proof of concept bulk x-ray machine that were
sold for an average price per carat of US$853.
Carats Revenue (US$) Price per carat
(US$)
Q1 2012 Q1 2013 Q1 2012 Q1 2013 Q1 2012 Q1 2013
Holpan 1,117 - 1,096,331 - 981 -
Klipdam 1,825 2,185 1,810,975 1,200,803 992 550
Klipdam 24 - 19,019 - 786 -
Extension
Saxendrift 1,813 2,037 4,868,436 3,516,185 2,686 1727
Tirisano - 1,007 - 313,712 - 311
Total 4,779 5,229 7,794,759 5,030,700 1,631 962
Saxendrift - 1,005 - 857,090 - 853
tailings
Total 4,779 6,234 7,794,759 5,887,790 1,631 944
sales
The salient features of the fourth quarter diamond sales are as follows:
- The Klipdam Mine achieved a 20% increase in carats sold, as a result of
mining the Rooikoppie unit. The average revenue per carat of US$550 was in
line with the previous quarter, resulting from the finer diamond distribution
in the previously mined Rooikoppie unit, which also has a lower cost of
mining.
- Although carats sold from Saxendrift increased 12% year on year, (up 10%
quarter on quarter), a lower average price per carat of US$1,727 was recorded.
The year on year decline in average price per carat was due to the sale of
several high valued stones in the comparative quarter of fiscal 2012, only a
handful of which are recovered annually, that significantly raised the average
value per carat for that period.
- A total of 1,007 carats recovered from Tirisano were sold during the first
quarter at an average price of US$311 per carat. The decrease in average carat
value is due to mining a less clay rich unit and the processing of tailings
overlying the above unit during the rainy season, which has a smaller average
diamond size. This was necessitated by the mine`s reliance, in the interim, on
dry front-end processing capability. However, this will be chiefly mitigated
with the installation of a wet front-end processing system which is currently
being commissioned.
- Diamonds recovered from Saxendrift tailings, using the proof of concept bulk
x-ray project that was commissioned in April 2012, totaled 1,005 carats. These
were sold at an average value per carat of US$853.
"Tangible benefits of our diamond value management initiatives are starting to
flow through, with a 44% increase in carats sold in the first quarter from our
three operational mines," said James Campbell, CEO, Rockwell. "The sale of
1,005 carats from the pilot bulk x-ray project at Saxendrift also provided an
unbudgeted boost to our sales. It is our plan to incorporate this technology
into future mining developments and the results of the proof of concept give
us confidence in the sales revenues that this technology could unlock for the
Company."
Commenting on the diamond market, Campbell explained that: "Diamond prices
during the first quarter of fiscal 2013 were stable year-on-year. In the
polished market, we saw some pricing pressure, mainly related to the global
financial uncertainty. However, this was dampened by growth in demand from
India and China. In the USA, especially in affluent market segments, retail
sales are showing signs of recovering. We have seen the biggest drop in prices
for smaller polished diamond while prices for plus 2 carat stone sizes, which
represent more than 80% of Rockwell`s production, have been constant. It is
our expectation that rough prices will remain stable for the remainder of the
calendar year."
Notable Stones
The Company continued to produce large stones at all its operations during the
fourth quarter with the recovery of 69 stones exceeding 10 carats:
- Klipdam produced 18 stones exceeding 10 carats, including four stones
exceeding 20 carats;
- Saxendrift produced 32 stones that were larger than 10 carats, with four +50
carat stones, including a 92 carat rough diamond;
- Tirisano produced three plus 10-carat stones; and
- The pilot bulk x-ray system produced 16 stones exceeding 10 carats from
Saxendrift tailings with the largest weighing 53 carats and 74 carats
respectively.
These stones were channelled into the Company`s beneficiation joint venture
with Steinmetz Diamond Group, which delivers value added revenues for
Rockwell`s stones that are larger than 2.8 carats.
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 production 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 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.
Johannesburg
27 June 2012
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 27/06/2012 14:30:01 Produced by the JSE SENS Department.
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