March 04, 2008 Rockwell Achieves Strong Average Prices For Its Second Diamond Sale Of 2008
March 4, 2008, Vancouver, BC -- Rockwell Diamonds Inc ("Rockwell" or the "Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) reports on its second diamond sale this year completed on February 28th, 2008.
The Company offered a total of 1,843.43 carats for sale, representing production from the Wouterspan, Holpan, and Klipdam alluvial diamond operations.
Rockwell realized total revenue of US$ 4,520,000 for this sale, representing an average price of US$2,452 per carat. Sales details from production from the individual operations are tabulated below.
Average Price (US$ per carat)
Like in its January sales, prices achieved for the diamonds sold in February showed strength in all categories. Prices for top quality white stones were particularly strong, with strong increases above those achieved for similar goods in the November 2007 sale. A total of 468 carats, 25% of the total production sold, were plus 10 carat stones. Distribution of diamonds larger than 10 carats sold in the February tender by Rockwell was as follows:
11 stones of 10 -- 20 carats
3 stones of 21 -- 30 carats
4 stones of 30 -- 40 carats
1 stone of 40 -- 50 carats
1 stone of 60 - 70 carats
The diamonds sold represent production for a 28 day period from mid-January to mid-February 2008; 68% of the production is plus 2 carats in size, which is above the average of 60% plus 2 carats diamonds. Six diamonds of D color quality and over 10 carats in size were recovered. Four of these stones achieved a price of plus $10,000/carat and two diamonds achieved a price of over $20,000/carat.
The diamonds were produced at an operating cost of approximately US$4.00 per tonne, or US$1,364 per carat during the period. The increase in operating cost is attributed primarily due to lower than normal production throughput as the result of power outages from the National electrical utility grid experienced in January (see Rockwell News Release January 28 2008) and, to a lesser extent, to heavy rain storms experienced at all mines during this period.
President and CEO John Bristow noted "The prices achieved for the second tender were excellent given the nature of the production, which unlike the previous tender did not include any high quality plus 40-carat stones.
Regarding operating costs and our plans to deal with future power outages, the Company has conducted a detailed analysis of all its electricity needs, and introduced electrical usage and costs saving programs at all its operations and offices. We have also placed orders for four standby diesel generator sets to be installed at all of the Company's mines. Delivery time on these generator sets is nine weeks from mid-February."
For further details on Rockwell Diamonds Inc., please visit the Company's website at www.rockwelldiamonds.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.
John Bristow President and CEO
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