High output and better US$ prices add sparkle to Namdebs results

NAMIBIA’S diamond giant, Namdeb Diamond Corporation yesterday released its half-year financial results for 2004 which showed remarkable growth compared to last year’s results over the same period.

The company had an increase of 25 per cent after selling 810 000 carats by June 30 compared to first six months of 2003. Diamond revenue for the same period amounted to N$1 708 million, which was 16 per cent more than the first six months of last year.Namdeb attributed the increase to higher carat sales and favourable US$ prices which offset the negative impact of the strengthening local currency.The results were presented at a press conference held by Namdeb’s Group Financial Manager Andrew Schanknecht, Group Human Resources Manager Percy McCallum and Group Business Services Manager Paulo Shipoke at Namdeb Centre in Windhoek.Delivering the financial results, McCallum said total payment to shareholders the Namibian Government and De Beers consisting of royalties, provisional tax, non residents’ shareholders tax and an interim dividend amounted to N$366 million, which remains the same as over the same period last year.The previous full financial year from January to December 2003, the company sold 1 358 000 carats, diamond revenue amounted to N$2 937 million and the distributable amount for shareholders was N$589 million.Commenting on the performance, McCallum said: “This is a milestone achievement, considering that Namdeb’s land reserves are nearing depletion.”Only innovative mining techniques and the commitment of its employees has made this achievement possible.Another important contributing factor to Namdeb’s remarkable results is the outstanding performance of De Beers Marine Namibia, which produces almost half of Namdeb’s current production.”On the global diamond market update, it was noted that consumer markets reported growth in retail sales of diamond jewellery compared to last year, when the world was devastated by war in the Middle East and the SARS virus, which impacted negatively on affected countries GDPs, and hence a ripple effect on sales of diamond.Optimism remains high for the second half of the year: “With positive macro-economic indicators and increased levels of confidence, the trade is optimistic that the strong consumer demand will continue through the second half and expectations are that retail sales for the year as a whole will be comfortably ahead of 2003.”The Diamond Trading Company (DTC) recorded a consistent demand for rough diamonds throughout the period and sales for the six months totalled US$2 983 million (N$19 687 million), 2, 16 per cent higher than the same period last year.The financial results also gave an update on the company’s strategic projects, which are the Pocket Beaches Site 2 project lying half-way between Luderitz and Oranjemund and the Elizabeth Bay Project; which projects would extend the life of land based mining.Another important initiative is that of Black Economic Empowerment, in which Namdeb together with Scorpion Zinc and Rosh Pinah recently launched a preferential procurement initiative to promote local and empowerment purchasing.Between January and June this year, Namdeb’s procurement from local suppliers exceeded N$800 million.Diamond revenue for the same period amounted to N$1 708 million, which was 16 per cent more than the first six months of last year.Namdeb attributed the increase to higher carat sales and favourable US$ prices which offset the negative impact of the strengthening local currency.The results were presented at a press conference held by Namdeb’s Group Financial Manager Andrew Schanknecht, Group Human Resources Manager Percy McCallum and Group Business Services Manager Paulo Shipoke at Namdeb Centre in Windhoek.Delivering the financial results, McCallum said total payment to shareholders the Namibian Government and De Beers consisting of royalties, provisional tax, non residents’ shareholders tax and an interim dividend amounted to N$366 million, which remains the same as over the same period last year.The previous full financial year from January to December 2003, the company sold 1 358 000 carats, diamond revenue amounted to N$2 937 million and the distributable amount for shareholders was N$589 million.Commenting on the performance, McCallum said: “This is a milestone achievement, considering that Namdeb’s land reserves are nearing depletion.”Only innovative mining techniques and the commitment of its employees has made this achievement possible.Another important contributing factor to Namdeb’s remarkable results is the outstanding performance of De Beers Marine Namibia, which produces almost half of Namdeb’s current production.”On the global diamond market update, it was noted that consumer markets reported growth in retail sales of diamond jewellery compared to last year, when the world was devastated by war in the Middle East and the SARS virus, which impacted negatively on affected countries GDPs, and hence a ripple effect on sales of diamond. Optimism remains high for the second half of the year: “With positive macro-economic indicators and increased levels of confidence, the trade is optimistic that the strong consumer demand will continue through the second half and expectations are that retail sales for the year as a whole will be comfortably ahead of 2003.”The Diamond Trading Company (DTC) recorded a consistent demand for rough diamonds throughout the period and sales for the six months totalled US$2 983 million (N$19 687 million), 2, 16 per cent higher than the same period last year.The financial results also gave an update on the company’s strategic projects, which are the Pocket Beaches Site 2 project lying half-way between Luderitz and Oranjemund and the Elizabeth Bay Project; which projects would extend the life of land based mining.Another important initiative is that of Black Economic Empowerment, in which Namdeb together with Scorpion Zinc and Rosh Pinah recently launched a preferential procurement initiative to promote local and empowerment purchasing.Between January and June this year, Namdeb’s procurement from local suppliers exceeded N$800 million.