TORONTO (miningweekly.com) – Vancouver-domiciled Rockwell Diamonds sold $7-million worth of gems at an average $2 187/ct during the three months ended August, it said on Monday.
Production had been weak at the company’s South African mines in June and July, but it achieved more than 10% of the quarter’s output in a single day at its Saxendrift operation on August 2, when it recovered 373 ct.
TSX- and JSE-listed Rockwell mines diamonds in ancient river beds in South Africa’s Northern Cape, Free State and Northern Province, where it digs for large, high-value stones.
Rockwell said that diamond prices remained strong, but that the macroeconomic gloom had impacted the market.
“During June and July 2011, prices for both rough and polished diamonds increased, as higher pricing in the downstream industry was led by speculative activity,” the company said.
“By the end of August, prices had corrected but are expected to stabilize following the Hong Kong diamond show and the next De Beers sight later this month.”
Rockwell CEO James Campbell said that prices of the diamonds the company sold doubled for the three months ended August, while the general market only saw a 25% year-on-year rise for the period.
“This is a clear demonstration that the diamonds which we have presented for sale are of a superior quality and in high demand,” he commented.
The company will report its financial results for the quarter ended August 31 around October 17.