[miningmx.com] — AN initial public offering for Namdeb Diamond Corp is not on the cards, the group’s financial manager said on Tuesday.
Markus Lubbe was responding to questions raised after managing director Inge Zaamwani-Kamwi mentioned an IPO as one possible way to finance the company’s N$5bn expansion plans.
“It is one of many possible ways to attract funding, but for now there are no prospects for an IPO. An IPO is one of the options available on the shopping list, but it’s so early days that right now it’s pie in the sky,” Lubbe told Reuters.
“An IPO is less likely than financing the expansion through our own shareholders. However, at this point the way of financing is not a question, we don’t even have a mandate from the board yet,” he said.
Namdeb, Namibia’s main diamond producer, is a 50-50 joint venture between the government and De Beers, which is 45% owned by mining group Anglo American.
Namdeb is looking for finance over a 10 year period to develop in-shore and inner-shelf deposits to bring land-based production back to one million carats per year.
“We believe that there are enough diamonds to mine one million carats a year till 2050,” said Lubbe.
Exploration in the new deposits will continue for the next three to five years, financed from the company’s own means.
“In five years’ time we have a major capital decision to make. Obviously if the business case is very strong, the shareholders would rather not dilute their share. Until that time the message is that land-based mining of diamonds are not closing down,” Lubbe said.
