News

Advanced Search

Namdia Garners $143M in First Annual Sales

Nov 7, 2018 8:00 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT... Namibia’s rough-diamond division is expanding its client base, after seeing strong sales in its first year of operations.

Namdia garnered revenue of NAD 2 billion ($142.8 million) in the 12 months that ended February 28, and last week declared a dividend of NAD 50 million ($3.6 million) to the government. It reported an after-tax profit of NAD 139.4 million ($10 million).

“Our clients have paid premium prices and our cash position continues to strengthen,” said Kennedy Hamutenya, Namdia’s CEO, following the publication of the company’s annual report last week. “We hope to build on this positive momentum by expanding our client base through the exploration of mixed sales strategies depending on our assortment and the qualities and sizes that the mines present to us.”

Namdia was set up in September 2016 as part of the government program to diversify its diamond industry beyond mining. The company is entitled to buy 15% of run-of-mine production from Namdeb, the mining joint venture of De Beers and the Namibian government.

The parastatal currently sells to five customers at 10 annual sales and is looking to increase that to 10 clients in the next fiscal year beginning on March 1, a spokesperson confirmed. Applications for new clients closed on October 31.

Hamutenya cautioned that current market conditions are less favorable due to tight liquidity in India since banks are shying away from financing diamond companies, while the threat of synthetic diamonds is also having an effect. Despite these negative factors, Namdia has consistently sold above De Beers’ price levels since its inception, the CEO noted. It achieved an average price of $537 per carat last year, but prices have softened in the past three months, a spokesperson noted. 

The company in June dismissed claims that it deliberately sold diamonds at cheaper rates to companies in Dubai.

Image: A diamond loupe. (Namdia)
Tags: De Beers, diamonds, Kennedy Hamutenya, Namdeb, Namdia, Namibia, NDTC, Rapaport, Rapaport News
Similar Articles
De BeersDe Beers Cuts Prices of Cheaper Rough
Nov 13, 2018
De Beers significantly reduced prices of lower-quality rough diamonds at this week’s sight in response to a slowdown in the Indian
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2018 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.