HomeDiamonds & GemstonesNamakwa Diamonds narrows loss

Namakwa Diamonds narrows loss

Namakwa Diamonds “’
full-year loss down
by almost two-thirds
London, England — MININGREVIEW.COM — 29 October 2010 – Integrated diamond resource group Namakwa Diamonds has posted a narrower full-year pre-tax loss, driven by higher diamond prices and improving demand in its key markets, and the company says it expects robust demand from India and China in fiscal 2011.

The diamond producer, which operates in South Africa, Botswana, the Democratic Republic of Congo (DRC) and Israel, also forecast total production for fiscal 2011 at about 316 000 to 317 000 carats.

Diamond producers were hit hard during the global economic meltdown, but a rebound in demand has encouraged producers to step up exploration for gems in order to maintain output.

Earlier this month, De Beers, which controls around 40% of the rough diamond market, said it expected to boost output in South Africa by nearly 50% this year as global demand for diamonds recovered.

For the year ended 31August, pretax loss at Namakwa was US$30.5 million (R207.4 million), compared with US$89.8 million (R610.6 million) a year ago.

Revenue tripled to US$82.0 million (R557.6 million), while production climbed 77%to 82 925 carats.

Namakwa’s shares, which have risen about 29% since the company bought DRC miner Kasai Resource Mining Limited in December, closed at 41.25 pence on Wednesday on the London Stock Exchange.