PROGRESS UPDATE ON - hdgold.com · De Beers and 4 years as Managing Director of African Diamonds...
Transcript of PROGRESS UPDATE ON - hdgold.com · De Beers and 4 years as Managing Director of African Diamonds...
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PROGRESS UPDATE ON STRATEGY AND FUTURE PLANS JAMES CAMPBELL, CHIEF EXECUTIVE OFFICER MARCH 2012
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FOCUS ON DIAMOND VALUE MANAGEMENT
AGENDA
• UNIQUE investment proposition
• Corporate OVERVIEW
• DIAMOND MARKET fundamentals
• Progress with top STRATEGIC PRIORITIES
• CASHFLOW and INVESTMENTS
• Operational TARGETS for fiscal 2013
• VALUATION considerations
• GROWTH plan and strategy
• Sustainable DEVELOPMENT
• PRIORITIES and OUTLOOK for fourth quarter
2
42.50 carat Type 2a from Saxendrift (May 2011)
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FOCUS ON DIAMOND VALUE MANAGEMENT
• Pipeline of projects to SUSTAIN and GROW production profile
• Resources and reserve estimates STATED PER NI 43-101
• Experienced executive leadership and strong board of directors to DRIVE VALUE CREATION
• Value adding BENEFICIATION partnership
• ENHANCING management and SKILLS base to unlock value and grow profitability
• CONSOLIDATING Holpan and Klipdam to profitably process remaining deposits
• Improve profitability at Saxendrift with FIT-FOR-PURPOSE in-field screen
• Establish LONG-LIFE OPERATION at Tirisano
• Appropriate technology underpinning DIAMOND VALUE MANAGEMENT focus e.g. bulk X-ray at Saxendrift
A UNIQUE INVESTMENT PROPOSITION…
Turnaround in progress � Milestones towards executing strategic objectives
Established diamond producer � Well-understood geology � Beneficiation partnership
Significant value gap
3
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FOCUS ON DIAMOND VALUE MANAGEMENT
BENEFICIATION JOINT VENTURE: SIGNIFICANT VALUE ADD 4
ROUGH POLISHED BENEFICIATION VALUE ADD
105 ct Type II A, Middle Orange
35 ct D color internally flawless
Sold for $230,000/ct +62% on initial rough
sale price
212 ct yellow, Middle Orange
102 ct vivid yellow
+50% on initial rough sale price
128 ct yellow, Middle Orange
81 ct vivid yellow
Not yet sold
Steinmetz Diamond Group (SDG) profit share agreement (>2.8 carat stones) • MARKET RELATED PRICES for diamonds sold into JV + 50% profit share • Realized revenue of $8.5m in last 3 years from 6,182 carats beneficiated ($5.5m F2012 YTD)
• ±25% of revenue from beneficiation, expected to increase
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FOCUS ON DIAMOND VALUE MANAGEMENT
ROCKWELL ROUGH DIAMOND PRODUCTION: AVERAGE US$/CARAT
$90/carat <0.3 c/stone #
$1,100 /carat ~1.2 c/stone #
$2,000/carat ~2.5 c/stone #
World Diamond Average
$700/carat ~0.9 c/stone #
Tirisano (North West Province, RSA)
Klipdam (Vaal River, RSA)
Saxendrift* /Wouterspan/Niewejaarskraal (Middle Orange River, RSA)
Small diamonds used in lower price point and pavé jewellery
Engagement rings (Bridal-range), mid to high price point jewellery
Engagement rings, high price point jewellery
High-end luxury jewellery High Net Worth Individuals
Investment Stones
# - Rough stone average sizes
5
* - Before increasing the bottom cut off to 5mm
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FOCUS ON DIAMOND VALUE MANAGEMENT
ROCKWELL OPERATIONS AND PROJECT LOCALITIES: NORTHERN CAPE AND NORTH WEST PROVINCES, SOUTH AFRICA
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FOCUS ON DIAMOND VALUE MANAGEMENT
Category Volume (m3)
Carats Value (USD) millions Feb 28 2011
Probable reserves 4,565,400 22,827 46.3
Indicated resources 34,787,600 675,412 489.6
Inferred resources 82,062,000 828,641 1,141.1
1,677.0
See slide 24 for for detailed 43-101 Mineral Reserves & Resources: At 28 February 2011. Estimates completed by Rockwell’s Manager, Resources, G.A. Norton, (Pr. Sci. Nat.), a qualified person who is not independent of the Company. Reviewed by T.R. Marshall, PhD, (Pr. Sci. Nat.), Marshall, an independent qualified person
EXTENSIVE DEPOSITS TO BENEFIT FROM DIAMOND FUNDAMENTALS
Sale of parcels to State Diamond Trader
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
F2009 F2010 F2011 F2012
Saxendrift: Average quarterly price per carat
US $/ct Linear (US $/ct)
Recession impact
7
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
100%
Saxendrift Klipdam Tirisano
% of carats exceeding 2 cts % of revenue exceeding 2cts
Sales and revenue statistics for +2ct rough diamonds
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FOCUS ON DIAMOND VALUE MANAGEMENT
LEADERSHIP TEAM WITH CREDENTIALS TO DELIVER VALUE
A leading international diamantaire and specialist in valuation, marketing and sales of rough diamond production from alluvial deposits.
Geological, mineral resource management and production experience in alluvial diamond deposits, diamond and coal exploration. Qualified person and Pr.Sci.Nat.
Group Technical Manager
Glenn Norton, BSC (Hons)
Diamond Marketing & Sales Manager Jeffrey Brenner
Mining and corporate experience with junior and senior mining companies with operations in SA, Australia and Canada. Knowledge of public listed mining Companies.
CFO Gerhard Jacobs,
BAcc, MBA
Group HR/IR Manager Richard Mhlonto,
Nat Dip (HR Management & Development)
Extensive HR & Industrial Relations management experience including organizational and structural design initiatives as well as strategy development and implementation.
Seasoned diamond executive with career spanning over 20 years at De Beers and 4 years as Managing Director of African Diamonds plc. FIMMM, C.Eng, C.Sci and Pr.Sci.Nat.
President and CEO James Campbell,
BSc (Hons ) ARSM, MBA (Dunelm)
Board of Directors: Mark Bristow (Chairman) Dave Copeland Richard Linnell Willem Jacobs Sandile Zungu Johan van’t Hof
>30 yrs in diamonds incl. mgt. roles at Orapa (world’s largest diamond mine) & The Oaks (De Beers’ smallest mine). Operations Manager at Pangea DiamondFields plc from 2007.
COO Michael Hunt,
MSc (Advanced Chemical Engineering)
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FOCUS ON DIAMOND VALUE MANAGEMENT
CAPITAL STRUCTURE AND SHAREHOLDING 9
Number of shares
Shares outstanding 47,942,746
Warrants -
Options ($0.90-9.45) 2,121,931
Convertible Debt (~$0.56) 3,499,257
Fully Diluted 53,563,934
Top shareholders (% shares in issue)
Strategic:
• Daboll (Steinmetz) 21.3%
• Godia Capital 8.3%
• Middle East Investors 7.1%
Institutional:
• Conus Partners 6.9%
• Earth Resources (ERIG) 3.6%
• Craton Capital 2.6%
• Wells Capital 1.6%
Other:
• Etruscan 2.6%
• Mark Bristow 1.2%
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FOCUS ON DIAMOND VALUE MANAGEMENT
STRONG FUNDAMENTALS FOR DIAMOND SECTOR
• Diamond DEMAND in carats forecast to grow at 6% p.a. to 2020
– OUTPACING annual SUPPLY growth of 2.8%
– SHORTAGES, particularly in large carat diamond segments
• CHINESE and INDIAN MIDDLE CLASS to double by 2020 – Driving demand surge
– Combined market share predicted to EQUAL US market share of 30% by 2020
• Growing SCARCITY of +2CT diamonds
– Currently represents 5% of diamond PRODUCTION and 50% of sales VALUE for producers
10
Source: PolishedPrices.com
Source: Deutsche Bank / Alrosa
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FOCUS ON DIAMOND VALUE MANAGEMENT
PROGRESS WITH TOP STRATEGIC PRIORITIES
CORPORATE
Board of directors STRENGTHENED Tirisano ACQUISITION closed out
Constructive PROGRESS with resolution of BEE matters
FINALIZATION of Midamines legacy issue
Strategic review of project opportunities for EFFECTIVE CAPITAL ALLOCATION
OPERATIONAL REORGANIZATION of senior mine MANAGEMENT teams
Production RAMP-UP COMMENCED at Tirisano after addressing fatal flaws
Production STABILIZING at Saxendrift
FINANCIAL
$7.8m RAISED at $0.75 without warrants or other incentives
DISPOSAL of non-core assets generated further $6.4m
Gross PROFIT of $0.5m in Q3 (Impact of Tirisano start up and Midamines)
NET CASH holdings of $10.8m at end of Q3
TECHNOLOGY Implementation of in-field screen at Saxendrift COMPLETED Proof of concept commissioning of bulk X-ray technology ON TRACK Relocation of CONTAINERIZED RECOVERY from Holpan (on care & maintenance) to Tirisano
11
ENTRENCHING DIAMOND VALUE MANAGEMENT
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FOCUS ON DIAMOND VALUE MANAGEMENT
CASHFLOW: INVESTING IN CAPACITY FOR GROWTH 12
BALANCE SHEET PROVIDES REQUIRED WORKING CAPITAL TO ACHIEVE SHORT TO MEDIUM TERM OBJECTIVES
$-
$5
$10
$15
$20
$25
Open
ing ca
sh an
d ca
sh eq
uivale
nts
Cash
Gen
erate
d by
Ope
ratio
ns
Net c
hang
es in
wo
rking
capit
al
Proc
eeds
of
Priva
te Pl
acem
ent
Proc
eeds
of
conv
ertib
le bo
nd
Proc
eeds
from
sa
le of
asse
ts
Cape
x: Tir
isano
, Sax
endr
ift an
d pu
rchas
e of m
inera
l pro
perty
int
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ts
Move
ment
in
recla
matio
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osits
Othe
r cas
h flow
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Clos
ing ca
sh an
d ca
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uivale
nts
$m
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FOCUS ON DIAMOND VALUE MANAGEMENT
OPERATIONAL TARGETS FOR FISCAL 2013
MINE PRODUCTION (m3)
GRADE (carats/100m3)
CASH OPERATING COST/m3 CAPITAL
EXPENDITURE REVENUE/CARAT
(US$) BUDGET F2012 YTD
KLIPDAM At name plate capacity (90 000) Stable $7.32* $10.35 Minimal In line with F2012
YTD
SAXENDRIFT Increase to 150 000 with new in-
field screen Stable $8.42 $8.35 $400,000 In line with two year
average
TIRISANO Ramping up to 90,000m3 p.m.
06/2012
Gradual improvement to
1.8 by 06/12 $10.38** $16.84 $750,000 In line with stated
prices of $700
13
- ZAR/CAD exchange rate of 8.00 - Full implementation of contops at all operations for F2013 - Corporate expenses budgeted to remain stable - Beneficiation (stones > 2.8 carats) not included in average price per carat expectation * Change of mining plan ** Ramp-up
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FOCUS ON DIAMOND VALUE MANAGEMENT
CORRELATION OF RESOURCES TO PRODUCTION RESULTS
0.0
0.5
1.0
1.5
2.0
2.5
3.0
May 0
8
Aug
08
Nov 0
8
Apr 0
9
Jul 0
9
Oct 0
9
Jan
10
Apr 1
0
Jul 1
0
Oct 1
0
Jan
11
Apr 1
1
Jul 1
1
Oct 1
1
Grad
e ct/1
00 m
³
Saxendrift Recovered Grade versus Resource Grade
Mine Grade 43101 Grade Budget Grade
0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5
Q1 20
07
Q2 20
07
Q3 20
07
Q4 20
07
Q1 20
08
Q2 20
08
Q3 20
08
Q4 20
08
Q1 20
09
Q2 20
09
Q3 20
09
Q4 20
09
Q1 20
10
Q2 20
10
Q3 20
10
Q4 20
10
Q1 20
11
Q2 20
11
Q3 20
11
Q4 20
11
Grad
e ct/1
00m
³
Klipdam Recovered Grade versus Resource Grade
Mine Grade 43101 Grade Budget Grade
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FOCUS ON DIAMOND VALUE MANAGEMENT
INDEPENDENT VALUATION: CONFIRMED VALUATION GAP 15
Adjusted book value / Fair Market Value of Properties using discounted cashflow
Resource properties: $121.9m - $137.3m Adjusted book value: $149.5m - $165.0m
Wouterspan ($47.4m - $54.8m)
Tirisano ($17.6m - $20.0m)
Klipdam ($3.6m)
Holpan ($281,000)
Niewejaarskraal ($37.4m -
$42.5m)
Saxendrift ($15.5m - $16.1m)
30%
30%
40%
0
10
20
30
40
50
60
70
Weighted market value estimate: $62m
Adjusted book value method Guideline public company method Trading price method
Additional details contained in “Additional Information”
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FOCUS ON DIAMOND VALUE MANAGEMENT
TRADING AT A DEEP DISCOUNT TO INTRINSIC VALUE 16
• Closing RDI share price at 31January 2012: C$0.495 • Enterprise Value: Market cap less Loans from related parties and capital lease obligation less Deferred
tax and reclamation plus cash (Excludes receivable from BEE partner of C$6.9m) • Value based on budget margin per carat: Uses internal RDI F2013 budget
$m
0
20
40
60
80
100
120
140
160
180
200
Market capitalization Enterprise value Tangible Net Asset Value (NAV - Mineral property
interests)
Net Asset Value Value based on budget margin per carat
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FOCUS ON DIAMOND VALUE MANAGEMENT
PEER GROUP REVIEW OF DIAMOND JUNIORS: FURTHER CONFIRMATION OF ROCKWELL’S VALUE UPSIDE
17
Source: Company websites, ThomsonReuters
0
200
400
600
800
1000
1200
Diamond- corp
Firestone Lucara Mountain Province
Namakwa Rockwell Diamonds
Stellar Trans Hex
Average price/carat sold (US$)
0
1
2
3
4
5
6
7
Diamond- corp
Firestone Lucara Mountain Province
Namakwa Rockwell Diamonds
Stellar Trans Hex
Price: Tangible Book Value
0% 2% 4% 6% 8%
10% 12% 14% 16%
Diamond- corp
Firestone Lucara Mountain Province
Namakwa Rockwell Diamonds
Stellar Trans Hex
Market Cap: Resource value
$-
$100
$200
$300
$400
$500
Diamond- corp
Firestone Lucara Mountain Province
Namakwa Rockwell Diamonds
Stellar Trans Hex
Enterprise value ($m)
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FOCUS ON DIAMOND VALUE MANAGEMENT
GROWTH PLAN: CREATE CRITICAL MASS AND SCALE
Reviewing additional capital requirement to fund expansion with preference for internal cash flows Projected production based on mine plans in November 2010 preliminary assessments (Tirisano, Wouterspan and Niewejaarskraal) and prefeasibility study (Saxendrift). Refer to Saxendrift resource statement on www.rockwelldiamonds.com
18
* Based on budgeted carat values for 2013 and 2.5% annual price increases
-
200 000
400 000
600 000
800 000
-
20 000
40 000
60 000
80 000
100 000
F2012 F2013 F2014 F2015 F2016
Volu
me /
mon
th (m
3)
Tota
l car
ats /
year
Production targets
Niewejaarskraal Wouterspan Tirisano Klipdam Saxendrift Total Production / month
0
50
100
150
200
F2012 F2013 F2014 F2015 F2016
Reve
nue /
year
($m
)
Revenue targets*
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FOCUS ON DIAMOND VALUE MANAGEMENT
REVIEW OF INVESTMENT OPTIONS: VALUE CREATION POTENTIAL
0
2
4
6
8
10
12
Wouterspan Niewejaarskraal Saxendrift Extension
Tirisano Expansion
NPV / Capital Expenditure (times)
19
Wouterspan
Saxendrift Extension IFS
Only
Saxendrift Extension
Complete Plant
Tirisano Expansion
R 0
R 100
R 200
R 300
R 400
R 500
R 600
R 700
R 800
R 900
0 50 100 150
NPV
(ZAR
milli
ons)
Resource Size m3 (millions)
Rockwell Diamonds Inc Capital Development (Bubble Size = Capital Requirement) Niewejaarskraal
Projected production based on mine plans in November 2010 preliminary assessments (Tirisano, Wouterspan and Niewejaarskraal) and prefeasibility study (Saxendrift). Refer to Saxendrift resource statement on www.rockwell diamonds.com.
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FOCUS ON DIAMOND VALUE MANAGEMENT
SUSTAINABLE DEVELOPMENT • Supporting LOCAL ECONOMIC DEVELOPMENT
– LOCAL BENEFICIATION: 85% of diamonds in South Africa
– Provided STARTUP CAPITAL and mentorship for construction and brickmaking factory
• SAFETY: Committed to providing safe working environment
– ONE MILLION LTI FREE hour record at Saxendrift
• Employment: 683 full time employees
– Total of 79 new jobs created with conversion to CONTOPS in Northern Cape
• Corporate Social Investment
– Supporting LOCAL ORGANIZATIONS focused on under privileged children, education
and feeding schemes for elderly
• Managing ENVIRONMENTAL impact: REHABILITATION as
land is mined
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FOCUS ON DIAMOND VALUE MANAGEMENT
PRIORITIES AND OUTLOOK: FISCAL 2013
• PRIORITIES:
– Ramp up of TIRISANO to full production
– RESOLVE issues with BEE shareholding and funding
– Further progress with IMPLEMENTATION of bulk X-ray technology at Saxendrift
• OUTLOOK:
– Long term FUNDAMENTALS underpinned by uptake from CHINA and INDIA and REDUCING SUPPLY
– PRICES and DEMAND expected to INCREASE to June 2012
– Rockwell’s BALANCE SHEET provides working capital for short to medium term plans
– Ongoing REVIEW of potential CORPORATE ACTIONS for growth
– Continue ADDING value through BENEFICIATION joint venture with Steinmetz
– Deliver on operational priorities to start seeing FINANCIAL BENEFITS
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FOCUS ON DIAMOND VALUE MANAGEMENT
FORWARD LOOKING STATEMENTS Except for statements of historical fact, this presentation release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements.
Factors that could cause actual results to differ materially from those in forward-looking statements include uncertainties and costs related to exploration and development activities, such as those related to determining whether mineral resources exist on a property; uncertainties related to expected production rates, timing of production and cash and total costs of production and milling; uncertainties related to the ability to obtain necessary licenses, permits, electricity, surface rights and title for development projects; operating and technical difficulties in connection with mining development activities; uncertainties related to the accuracy of our mineral resource estimates and our estimates of future production and future cash and total costs of production and diminishing quantities or grades if mineral resources; uncertainties related to unexpected judicial or regulatory procedures or changes in, and the effects of, the laws, regulations and government policies affecting our mining operations; changes in general economic conditions, the financial markets and the demand and market price for mineral commodities such and diesel fuel, steel, concrete, electricity, and other forms of energy, mining equipment, and fluctuations in exchange rates, particularly with respect to the value of the US dollar, Canadian dollar and South African Rand; changes in accounting policies and methods that we use to report our financial condition, including uncertainties associated with critical accounting assumptions and estimates; environmental issues and liabilities associated with mining and processing; geopolitical uncertainty and political and economic instability in countries in which we operate; and labour strikes, work stoppages, or other interruptions to, or difficulties in, the employment of labour in markets in which we operate our mines, or environmental hazards, industrial accidents or other events or occurrences, including third party interference that interrupt operation of our mines or development projects.
For further information on Rockwell, Investors should review Rockwell's annual Form 20-F filing with the United States Securities and Exchange Commission www.sec.com and the Company's home jurisdiction filings that are available at www.sedar.com.
This presentation also uses the terms 'indicated resources' and 'inferred resources'. Rockwell Diamonds Inc. advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, 'inferred resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
The securities of Rockwell being offered have not been, nor will be, registered under the U.S. Securities Act and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This information does not constitute an offer or sale of securities in the United States. Prior to making any investment decision, investors should consult a professional advisor.
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ADDITIONAL INFORMATION
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FOCUS ON DIAMOND VALUE MANAGEMENT
ROCKWELL 43-101 MINERAL RESERVES & RESOURCES: AT 28 FEBRUARY 2011
PROPERTY CATEGORY VOLUME (M3) GRADE VALUE (USD/CT)
NOV 30 2010 FEB 28 2011* (CT/100M3) 43-101 FY2011
SAXENDRIFT/ KWARTELSPAN
Probable* 4,859,900 4,565,400 0.5 $2,029 $2, 003 Indicated 1,774,600 NC 0.66
Inferred 5,986,000 NC 0.56
KLIPDAM Indicated 2,091,200 1,907,900
1.21 $1,049 $1,119 Inferred 949,000 NC
HOLPAN Indicated 517,800 395,000
0.95 $1,229 $1,202 Inferred 527,000 NC
ERF 404 Indicated 404,700 NC
0.63 $986 Inferred 127,000 NC
RIETPUTS Inferred 782,000 735,000 0.76 $788 $974
WOUTERSPAN Indicated 5,025,500 NC
0.7 $2,029 Inferred 37,774,000 NC
NIEWEJAARSKRAAL Inferred 20,630,000 NC 0.84 $2,029
TIRISANO** Indicated 25,279,900 NC
2.37 $606 Inferred 15,334,000 NC
Estimates done at November 30, 2010 and reconciled to February 28, 2011 by including material removed by trial mining and bulk sampling in Q4 FY2011.
NC : no change Value: average value of the sales of diamonds during sampling.
* Saxendrift probable mineral reserves are exclusive from the indicated mineral resources.
** Tirisano acquisition not yet complete as the mining rights have not yet been ceded to Rockwell. Rockwell also holds the Zwemkuil Project (incl. Zwemkuil, Mooidraai and Holsloot properties), which was reviewed in fiscal 2011. This is a significant exploration target, but to date there has not been sufficient work done to estimate mineral resources
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FOCUS ON DIAMOND VALUE MANAGEMENT
INDEPENDENT VALUATION1: CONFIRMED VALUATION GAP 25
1. The valuation, dated February 28, 2011, conducted by Jennifer Lucas, MBA, CBV, ASA, of Evans & Evans Inc. 1. Valuation of 74% of mine 2. Discount rates:
Wouterspan, Tirisano and Niewejaarskraal: 25.36% to 28.96% Klipdam, Holpan and Saxendraft: 22.36% to 24.96%
4. Adjustments to balance sheet of Rockwell to evaluate fair value of net assets at February 28, 2011
Adjusted book value method using discounted cashflow
Operation Value range
Fair M
arke
t Valu
e2
Wouterspan3 $47.4m - $54.8m
Tirisano3 $17.6m - $20.0m
Klipdam3 $3.6m
Holpan3 $281,000
Niewejaarskraal3 $37.4m - $42.5m
Saxendrift3 $15.5m - $16.1m
Resource properties $121.9m - $137.3m
Adjusted book value4 $149.5m - $165.0m
Valuation method Midpoint of fair market value
($m) Weighting Value
($m) Weighting Value ($m)
Trading price method5 25.28 40% 10.11 40% 10.1
Guideline public company method6 15.80 30% 4.74 25% 3.95
Adjusted book value method 157.25 30% 47.18 35% 55.04
Total 62.00 69.10
5. Valuation using average trading price of Rockwell for the 10 and 90 days preceding the valuation date
6. A guideline public company method comparing Rockwell’s average dollar value per enterprise value of reserves and resources to eight peer group companies