Wrap Text
Rockwell provides feedback from second 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 TSX: RDI CUSIP Number: 77434W103
Share code on the OTCBB: RDIAF
(“Rockwell” or “the Company”)
ROCKWELL PROVIDES FEEDBACK FROM SECOND QUARTER DIAMOND SALES
September 17, 2012 Vancouver, BC – Rockwell Diamonds Inc. ("Rockwell"
or the "Company") (TSX: RDI; JSE: RDI;) announces second quarter
fiscal 2013 revenues from diamond sales before beneficiation which
were down 3% compared to the same period last year but that increased
by 16% from the previous quarter.
Total proceeds of US$6.8 million were generated from the sale of
5,147 carats at an average price per carat for the quarter of
US$1,322 compared to US$7.0 million for the same period last year and
US$ 5.9 million for the previous quarter. The quarterly increase is
underpinned by the jump in carats that was led by the Company’s
diamond value management, reflecting a quarter-on-quarter increase of
30%.
Diamond sales and revenue for the Company’s operational mines for the
quarter ended August 31, 2012 was as follows:
Price per carat
Carats Revenue (US$)
(US$)
Q2 Q2
Q2 2013 Q2 2012 Q2 2013 Q2 2012
2013 2012
Holpan - 27 - 4,755 - 176
Klipdam 2,502 1,456 2,174,387 1,500,506 869 1,031
Saxendrift
1,699 1,740 4,257,158 5,542,268 2,506 3,186
+ Jasper
Tirisano 776 - 282,808 - 364 -
Total 4,977 3,223 6,714,353 7,047,529 1,349 2,186
Saxendrift
170 - 90,207 - 529 -
Bulk X-ray
Total sales 5,147 3,223 6,804,560 7,047,529 1,322 2,186
** Comprising 839 carats from Saxendrift and 860 carats from Jasper
The salient features of the second quarter diamond sales are as
follows:
- The Klipdam Mine achieved a 72% increase in carats sold, averaging
revenue per carat of US$869. This compares favorably to the average
carat value of US$550 in the previous three months and is the result
of recent mining in the paleaochannel unit that yields larger, higher
quality diamonds.
- Carats sold from the Saxendrift Complex, comprising Saxendrift, the
Bulk X-ray plant and the newly acquired Jasper Project, increased by
7% to 1,869 carats at an average price of US$2,326 per carat. The
average carat value for Saxendrift, while down on the same period
last year, increased 40% from the previous quarter to US$2,419,
largely due to the sale of several high quality diamonds.
- A total of 27 stones exceeding 9.80 carats in size, recovered from
Saxendrift and Jasper, were sold into the beneficiation joint venture
with Steinmetz Diamond Group during the quarter. This includes:
- A clean 70.55-carat white, makeable rough diamond recovered in
August 2012 from the Jasper Project that fetched a price of $18,000
per carat. This diamond was sold into the Steinmetz beneficiation
joint venture, under the terms of which Rockwell participates equally
in the profits from the sale of the polished diamonds.
- Diamond sales from Tirisano totaled 776 carats
- as the mine was put on hold from July 2012 in order to right size
the operation.
“Our second quarter diamond sales improved, reflecting further
delivery on our strategic objectives which include optimizing our
productive mines and leveraging our production profile by developing
new assets,” said James Campbell, CEO, Rockwell. “Klipdam showed a
72% year-on-year increase in carats sold during the second quarter,
translating into a 45% increase in revenue from diamond sales. The
quality and average diamond value of the stones that we recovered in
August from the newly acquired Jasper Project matched Saxendrift’s
typical production profile. This encouraging result expands our
options for the Saxendrift Complex, indicating potential to increase
its economic life. We are also in the final stages of right sizing
Tirisano. The rationalized processing plant at Tirisano has now been
integrated into the new wet front end, in order that the mine can
recover higher quality stones and make a positive contribution to our
bottom line.”
Regarding the diamond market, Campbell commented: “Rough and polished
diamond prices corrected to more realistic levels during the quarter
under review, and market activity was much healthier, compared to the
same period in 2011 where trading was muted. We believe that the
overall market fundamentals are more positive than they have been
since 2008, which will be beneficial for diamond prices.”
Notable Stones
The Company continued to produce large stones at all its operations
during the second quarter with the recovery of 50 stones exceeding 10
carats:
- Klipdam produced 20 stones exceeding 10 carats, including three
stones exceeding 20 carats;
- Saxendrift produced 11 stones that were larger than 10 carats,
including two from the Bulk X-ray plant, with four stones exceeding
20 carats, including a 96.56-carat fancy yellow clean sawable rough
diamond;
- The Jasper Project produced 18 stones exceeding 10 carats during
preliminary bulk sampling in August 2012 with seven stones exceeding
20 carats, including the 70-carat rough diamond referred to above as
well as a 60.15-carat mackle; and
- Tirisano produced one plus 10-carat stone.
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
Stéphanie 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 home jurisdiction filings that are available at
www.sedar.com.
Johannesburg
17 September 2012
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
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