[miningmx.com] — NAMAKWA Diamonds plunged by 61.3% to 10.5p in London on Thursday after delivering a radical strategic review, parting company with its senior management and warning that it no longer had access to a $30m credit facility, the Financial Times reported on Friday.
The miner said on Thursday chief executive Nico Kruger had stepped down and would be replaced by chief finance officer Richard Collocott, a former Norilsk Nickel executive who joined the company in July.
Hans Smith, the group’s chairman, and Dirk van Staden, head of its audit committee, resigned by mutual consent.
Namakwa also said it was winding up all diamond trading joint ventures and was in advanced talks to sell its business in the Democratic Republic of Congo to local management.
The moves were intended to refocus Namakwa around its Kao kimberlite mine in Lesotho.
The Financial Times quoted RBC analyst Des Kilalea, who said any refinancing of Namakwa might require new equity.
“The overdue decision to clear cash-burning operations is welcome but, in our view, the difficult task facing new management is to rebuild the investment story such that new funds can be raised,’ he said.
