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Rockwell Achieves Higher Prices for Third Quarter Diamond Sales on the Back of Better Quality Stones from Saxendrift
PR Newswire
VANCOUVER, British Columbia, January 2, 2013
VANCOUVER, British Columbia,January 2, 2013/PRNewswire/ --
Rockwell Diamonds Inc. ("Rockwell" or the "Company") (TSX: RDI; JSE:
RDI;) today announced a 23% improved revenue from diamond sales, before
any sales from beneficiation, for the third quarter fiscal 2013 compared to the
same period last year.
Total proceeds ofUS$7.4 millionwere generated compared toUS$6.0
millionfor the same period a year ago andUS$ 6.8 millionfor the second
quarter. A total of 4,043 carats were sold at average price ofUS$1,821per
carat; and although the number of carats sold was 25% lower, the sale of
several high quality stones underpinned the 64% increase in the average
price per carat over a year ago.
Diamond sales and revenue for the Company's operational mines for the
quarter endedNovember 30, 2012is as follows:
 Price per carat  Carats Revenue (US$) (US$)  Q3 2013 Q3 2012 Q3 2013 Q3 2012 Q3 2013 Q3 2012  Saxendrift +  Saxendrift  Extension 1,647* 1,761 2,912,196 3,332,902 1,768 1,892  Saxendrift Bulk  X-ray 284 - 3,039,812 - 10,704 - Tirisano 214 1,625 74,383 1,272,214 348 783  Klipdam 1,490 1,990 982,957 1,356,388 660 681  Other** 408 - 352,055 - 863 - Total sales 4,043 5,376 7,361,403 5,961,504 1,821 1,109
* Comprising 566 carats from Saxendrift and 1,081 carats from Saxendrift
Extension Project
** Other refers to gravel processed by independent contractors and sold
through the Group's tender. These carats are excluded from grade
calculations.
The salient features of the third quarter diamond sales are as follows:
Carats sold from the Saxendrift Complex, comprising the Saxendrift Mine,
the Saxendrift Extension and the Bulk X-ray plant increased by 10% to
1,931 carats at an average price ofUS$3,082per carat. The average carat
value ofUS$1,768for Saxendrift was down 7% on the same period last
year, largely, because of the third quarter product mix. This price drop
compared well to the 15% decline in the global market price for rough
diamond prices in the +2 carat category that comprises most of the mine's production. Sales of diamonds recovered from the Bulk X-ray plant, also at Saxendrift,
generated total proceeds of$3.0 millionfrom the sale of 284 carats,
including a 145-carat rough diamond whose sale increased the average
price per carat from the plant toUS$10,704.
Diamond sales from Tirisano totaled 214 carats; mining operations of
Tirisano were placed on care and maintenance in the first week of
December 2012, due primarily to persistent industrial relations issues.
Carats sold from Klipdam declined 25% for the quarter to 1,490 carats
while the average value declined only marginally toUS$660per carat. In
line with expectations, the grade was down 25% quarter on quarter as
mining migrated out of the high-grade portion of the channel.
Notable Stones
The Company continued to produce large stones at all its operations: 51
stones exceeding 10 carats were recovered during the third quarter:
 Number of +10  carat stones Number/Description of +50 carat stones  Saxendrift + 5 stones including a 63.21-carat fancy yellow,  Saxendrift Extension 17 sawable, clean and a 77.84-carat makeable shape;  commercial color and clean rough
 Saxendrift Bulk X-ray 3 3 stones including a 145.51-carat, makeable, gem  color, clean
 Tirisano 2 -
 Klipdam 20 One 73.52-carat fancy yellow; sawable, spotted stone
These diamonds were channelled into the Company's beneficiation joint
venture with Steinmetz Diamond Group (SDG), which delivers value added
future revenues for Rockwell's stones that are larger than 2.8 carats, once
they have been polished and sold by SDG. Rockwell now has over 5,500
carats in the beneficiation pipeline.
"The 23% year-on-year increase in diamond sales for the third quarter is a
step in the right direction, reflecting improved operational efficiency and
enhanced by several rare and high quality stones that were recovered. In
particular, our operations in the Middle Orange, which are the engine of
Rockwell's future growth, produced a number of diamonds exceeding 50
carats in size; there was a 64% increase in average price over a year ago to
US$1,821per carat, in part because of that. The first cash flows from our
royalty mining contracts were also realized," said Rockwell President and
CEO James Campbell.
Commenting the diamond market, Campbell said: "Following weakness
during the first part of the year, the diamond market started the third quarter
on a cautious note. However, Rockwell experienced high level of interest at
final tenders for the year, underpinning a willingness to pay slightly higher
prices for our product. We are optimistic for next year, although the
momentum of the market will be largely dependent on strong Christmas
sales and further restocking of inventories. With an inventory of 2,704 carats
carried forward into the fourth quarter, we are well placed to take advantage
of any possible restocking trend."
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 two operational mines, which it is progressively
optimizing, as well as a third mine which will come into production in the first
quarter of 2013. Rockwell also has two development projects and a pipeline
of earlier stage properties with future development potential. The operations
are based on high throughput processing capability and Saxendrift, the
flagship mine has among the lowest unit costs in the industry, as a result of
implementing fit for purpose technologies.
The Company is known for producing large, high quality gem stone
diamonds comprising a major portion of its diamond recoveries and has a
beneficiation joint venture that enables it to participate in the profits on the
sale of the polished diamonds.
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 of 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 as 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 athttp://www.sedar.com.
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
(RDI. RDIAF)