Wrap Text
RDI - Rockwell Diamonds Incorporated - Rockwell provides feedback from
fourth 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")
ROCKWELL PROVIDES FEEDBACK FROM FOURTH QUARTER DIAMOND SALES
May 2, 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 fourth quarter of fiscal 2012.
Total proceeds of $6.0 million were generated from the sale of 5,795 carats.
The average price per carat for the quarter was $1,041.
Carats Revenue (US$) Price per carat
(US$)
Q4 2011 Q4 Q4 2011 Q4 2012 Q4 Q4 2012
2012 2011
Holpan 2,071 - $2,323,845 - $1,122 -
Klipdam 2,365 2,973 $3,316,227 $1,680,313 $1,402 $565
Saxendrift 1,395 1,847 $2,649,531 $3,758,504 $1,899 $2,035
Klipdam 595 - $932,022 - $1,567 -
Extension
Tirisano - 975 - $591,559 - $607
Other 27 $6,396 - $234 -
Total 6,453 5,795 $9,228,022 $6,030,376 $1,430 $1,041
The salient features of the fourth quarter diamond sales are as follows:
- The decision to concentrate on mining Rooikoppie unit instead of the
paleo-channel resources led to the 26% increase in carats produced from
Klipdam. The lower revenue per carat reflects the general smaller stone
sizes which characterize the Rooikoppie unit where the cost of mining
is also significantly lower.
- The combined impact of a 32% increase in carats sold from Saxendrift
stones to 1,847 carats as well a 7% improvement in the average price
per carat, underpinned by an increase in recovery of yellow diamonds,
enabled the mine to produce revenue growth of 42% in the fourth
quarter.
- Tirisano, which is currently ramping up its production, sold 975 carats
at an average price per carat of $607. This is consistent with the
values projected in the 2011 NI 43-101 report for Tirisano.
"On a like-for-like basis, sales from the Company`s three operational mines
showed a year-on-year increase of 153% to 5,795 carats sold in the fourth
quarter of fiscal 2012. The 10% decline in total carat production is the
result of placing Holpan on care and maintenance and discontinuing the bulk
sampling program at the Klipdam Extension property, decisions which were
commercially based and had a positive impact on the Company`s overall
viability," said James Campbell, President and CEO.
Commenting on the diamond market, Campbell explained that: "We benefited
from selling the inventories that we had accumulated towards the end of 2011
into a stronger market as diamond prices continued to recover throughout the
quarter. Of particular benefit to Rockwell is the sustained growth in demand
for investment diamonds, which comprise a large proportion of our production
profile and for which we are known. Our operations are now better placed to
meet our carat production targets, enabling us to deliver more consistent
volumes of high quality diamonds to our beneficiation joint venture partner,
Steinmetz Diamond Group, and our other customers."
Notable Stones
The Company continued to produce large stones at all its operations during
the fourth quarter with the recovery of 41 stones exceeding 10 carats:
- Klipdam produced 17 stones exceeding 10 carats, including seven stones
exceeding 20 carats;
- Saxendrift produced 22 stones that were larger than 10 carats, of which
half weighed more than 20 carats; and
- Tirisano produced two plus 10-caratstones.
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.
Canada
2 May 2012
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 02/05/2012 14:30:01 Supplied by www.sharenet.co.za
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