JSE- and TSX-listed diamond producer 
Rockwell Diamonds said that it was “cautiously optimistic” about the diamond market and price trends.

Rockwell CEO John Bristow said that it was encouraging that the sentiment towards diamonds had improved.

“We have seen encouraging signs of 
improvement in demand and sales in the past six-month period, and remain cautiously 
optimistic ahead of the Christmas season,” said Bristow.

He added that, despite the increased uptake of diamonds in the market, stocks remained high as a result of lower US imports of polished 
stone, weaker US sales, and destocking within the US diamond jewellery retail trade.

However, demand for diamond jewellery 
remained strong in China and India, while the rest of Asia remained resilient.

Bristow added that prices had also shown increases in the past six months, despite the fact that major diamond producers, such as De Beers, which had cut back on production in the first part of the year, had recently 
resumed sales of rough diamonds.

“We haven’t seen any negative impact on the market and, hence, our cautious optimism going forward.”

Despite diamond prices showing an upswing since March, the prices were considerably below the average 2008 prices, and remained challenging for revenue and cash flow.

“In terms of retail, Rockwell has seen 
improvement in prices in the 2-ct to 10-ct rough range, with greater increases in the 2-ct to 5-ct stones. 
“Prices are spotty and poorer-quality goods remain depressed, and trade is still slow in large goods above 10 ct, though good-quality white stone has attracted buyers.”

Bristow estimated that prices of stones lower than the 10-ct range were likely 
to average 60% to 70% of prior year prices, 
whereas stones larger than 10 ct were on 
average at about 60% of the prior year figures.

During the third quarter, ended August, the average diamond price received by Rockwell increased by 54%, to $855/ct, up from $555/ct 
in the preceding three months.

In the six months ended August 31, the com-
pany produced 11 957 ct and sold 11 235 ct, 
at an average price of $718,22/ct.

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