June 12, 2008 Rockwell Completes Its Fourth Diamond Sale Of 2008
Excellent margins on sales of stones manufactured in terms
of Steinmetz Joint Venture
June 12, 2008. Vancouver, B.C. -- Rockwell Diamonds Inc ("Rockwell" or the "Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) reports on its fourth diamond sale in calendar 2008, completed on May 22, 2008.
The Company offered a total of 2,142.52 carats for sale, representing diamond production for most of the month of April 2008 from the Wouterspan, Holpan and Klipdam mining operations.
Rockwell realized total revenue of US$2,555,471 for this sale, representing an average price of US$1,192 per carat. Sales details from production from the individual operations are tabulated below. Rockwell receives 74% of the revenues from the sale of the diamonds from these operations.
Operation
Sales (carats)
Average Price (US$ per carat)
Wouterspan
475.92
1566
Holpan
680.72
1500
Klipdam
985.88
800
total
2142.52
1192
As was the situation for its previous diamond sales, prices achieved for the diamonds sold in the latest (May) tender showed strength in all categories. Top prices of US$26,161 per carat and US$10,193 per carat were achieved on 20.09 carat and 12.45 carat stones from Holpan and Wouterspan, respectively.
The distribution of diamonds larger than 10 carats sold in this latest sale by Rockwell was as follows:
10 stones of 10 -- 20 carats
8 stones of 21 -- 30 carats
1 stone of 30 -- 40 carats
1 stone of 115 carats of boart (industrial diamond) quality
During May 2008, two of the Company's diamonds that were manufactured and sold in respect of the Steinmetz Diamond Group joint venture were sold. Margins of 10% and 17% over and above the original rough diamond sales prices were achieved by Rockwell on these two stones.
Diamond production in this period was achieved at an operating cost of approximately US$3.60 per tonne.
President and CEO John Bristow noted "The prices achieved are indicative of the on-going strong demand for Rockwell goods. Although the overall prices realized were somewhat lower than past sales, the prices achieved were in line with the qualities sold. Had the 115 carat diamond sold in the latest sale not been a poor quality boart (industrial) stone, the overall average sale price would have been much higher.
Most encouraging were the margins realized on the two cut and polished stones manufactured and sold via the Steinmetz joint venture. With a number of stones now in the joint venture pipeline, we are expecting the real benefits of this added value process to come through."
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
You can view the Next News Releases item: Mon Jul 7, 2008, Rockwell Achieves Excellent Average Prices From June 2008 Diamond Sale
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