Namib Desert Diamonds (NAMDIA) says its after tax profits declined by 86% to N$13.3 million for the 2020/2021 financial year, as a result lockdown and travel restrictions emanating from the COVID-19 pandemic.
The diamond producer’s profit before tax for the period under review, amounted to N$73.7 million, down 51% from the previous financial year’s N$150.2 million.
“Rough diamond sales were adversely affected by lockdowns and travel restrictions due to COVID-19 pandemic, delaying the shipping of rough diamonds into cutting and trading centres and preventing buyers from attending sales events. This resulted in reduced rough diamond demand which led to declines in sales volume and softening of prices,” the company said on Friday.
Six sales totaling 144,967 carats at an average of USD 494.75 per carat, were conducted, generating total sales of N$2.6 billion (based on our calculations).
An extraordinary impairment provision of N$30.9 million was raised on the acquisition of NamGem Diamond Manufacturing Company during the period under review.
NAMDIA, which bought into Okahandja-based Namgem Diamond Manufacturing Company last year, paid N$43.5 million taxes to the Ministry of Finance, comprising N$32.2 million in income tax and N$11.3 million in export levy.
A dividend of N$40 million was declared to Government for the period. A dividend of N$40 million was declared to Government for the period.
