Rockwell provides feedback from fourth quarter diamond sales
VANCOUVER, May 2, 2012 /PRNewswire/ – 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 2012| Q4 2011 | Q4 2012 |Q4 2011|Q4 2012 | |__________|_______|_______|__________|__________|_______|________| |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.”
The Company continued to produce large stones at all its operations
during the fourth quarter with the recovery of 41 stones exceeding 10
-- 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.
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.
SOURCE Rockwell Diamonds Inc.