[miningmx.com] — NAMDEB Diamond Corporation (Namdeb) on Friday reported a return to profitability in the first half, with a profit before tax of N$719m for the six months ended June 2010 after a loss of N$685m in H1 2009.
Namdeb MD Inge Zaamwani-Kamwi said while the company was encouraged by increased demand in H1, the global economic climate remains fragile, especially in the important diamond markets of the US, 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 depended on increased consumer confidence, especially in emerging markets,” Zaamwani-Kamwi said.
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 favourable footprint and continuous business improvement.
Sales increased to N$1.839bn compared with N$1.508bn in H1 2009. Carats recovered in H1 2010 amounted to 795 000 – more than double those of H1 2009.
Profit after tax improved to N$259m from a loss the previous period of N$396m, due to the increased revenue along with the favourable reduction in cost of sales. Taxes amounted to N$460m – 64% of profit before tax.
“We now have more enabling environment which driving empowerment, accountability, production and profitability. Namdeb people are empowered, accountable and not afraid to take risks. We are committed to unlock value from this world-class ore-body beyond 2050,” said Zaamwani-Kamwi.
