Namdeb back to profitability

Windhoek, Namibia — MININGREVIEW.COM — 06 September 2010 – The Namibian Diamond Corporation (Namdeb) has reported a return to profitability in the first half of 2010, with a profit before tax of R711 million for the six month period, after a loss of R678 million in H1 of 2009.

Namdeb managing director Inge Zaamwani-Kamwi said that while the company was encouraged by increased demand in H1, the global economic climate remained fragile, especially in the important diamond markets of the United States, Japan and Europe.

“We therefore look to the remainder of 2010 with measured optimism. With most restocking activities now largely completed, further demand growth is dependent on increased consumer confidence, especially in emerging markets,” she added.

Overall, general performance for the first half of 2010 improved significantly compared to the same period last year. This was achieved by increased production during the first half of 2010 and a favourable footprint and continuous business improvement.

Sales increased to R1.819 billion compared with R1.492 billion in the first six months of last year. Carats recovered in H1 2010 amounted to 795 000 “’ more than double the figure for the same period in 2009.

Profit after tax improved to R256 million from a loss in the previous period of R392 million, due to increased revenue along with favourable reduction in cost of sales. Taxes amounted to R455 million “’ 64% of profit before tax.

“We now have a more enabling environment which is driving empowerment, accountability, production and profitability. Namdeb people are empowered, accountable and not afraid,” said Zaamwani-Kamwi.