The global financial market turmoil might result in some "softening" of diamond prices despite fundamentals remaining firm, TSX- and JSE-listed Rockwell Diamonds CEO Dr John Bristow said on Thursday.

Mining Weekly Online spoke to Bristow as news broke that Rockwell's "exceptional" 189,6-ct gemstone had attracted a good price of $10-million.

Nearly 57% of Rockwell's production volume and 95% of Rockwell's value in fiscal 2008 was derived from diamonds in the plus-two-carat range, which sold at prices greater than $2 000/ct.

On pricing in the future, Bristow said: "We have to be pragmatic and appreciate that in the market we are living in at the moment there will be an impact on disposable incomes.

"We would not be so naive as to say that there won't be the price adjustments that we've seen in every other commodity and we need to be mindful of that," he added.

But, given TSX- and JSE-listed Rockwell's emphasis on sustainable cost reductions, Bristow saw the company as being particularly well positioned to manage price adjustments that may occur in the diamond market.

"We can rein in our costs further and toughen up in tough times," he said.

Rockwell would continue to have margin in holding down its costs at $3/t, which was about a third of costs under the previous ownership, while in-the-ground revenue was $6/t to $7/t.

"There is quite a bit of headroom in that margin," Bristow pointed out.

Another cost-cutting "ace up its sleeve" was the new low-cost proprietary technology that was being implemented at the modernised Saxendrift diamond-mining operation, which Rockwell was on track to commission ahead of schedule in November, after having already commissioned Saxondrift's diamond recovery plant well ahead of the due date.

The company had systematically reduced its employee count and had managed to open a fourth operation with fewer personnel.

"We understand our orebodies well and, if need be, we could mine higher-grade areas for a period of time, although we wouldn't like to do that," Bristow confided.