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Rockwell Updates 4Q Sales to $6M

Revenue Comparison Falls Short of 2011

May 2, 2012 9:51 AM   By Jeff Miller
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RAPAPORT... Rockwell Diamonds updated a preview of its fourth-quarter rough sales for fiscal-year 2012, during which company proceeds reached $6 million for 5,795 carats. During Rockwell's fourth-quarter of fiscal-year 2011, revenue exceeded $9.2 million.

The company explained that this quarter at the company's Klipdam mine, it concentrated on mining its Rooikoppie unit instead of the paleo-channel resources, which led to a 26 percent increase in the volume of carats produced. Klipdam did produce 17 diamonds exceeding 10 carats, including seven that were larger than 20 carats.

At the company's Saxendrift mine, the combined impact of a 32 percent increase in carats sold to 1,847 carats and a 7 percent improvement in the average price per carat, underpinned by an increase in the recovery of yellow diamonds, enabled the mine to generate revenue growth of 42 percent in the fourth-quarter. Saxendrift produced 22 stones that were larger than 10 carats. Rockwell's Tirisano project, which is ramping up production, sold 975 carats at an average price per carat of $607. Tirisano produced two diamonds that were larger than 10 carats.

The company reported no production out of the Holpan project during the quarter. James Campbell, Rockwell's president, said, ''The 10 percent 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."

Campbell added that Rockwell benefited from selling inventory that  had accumulated towards the end of 2011  as diamond prices continued to recover throughout this fourth fiscal 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," he said.

Rockwell channels its larger rough diamonds into the company's beneficiation  venture with Steinmetz Diamond Group.

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