Namib Desert Diamonds (NAMDIA) generated total revenue of N$3.1 billion for the 2022/23 financial year, the highest in its six years of existence, including an all-high dividend declaration of N$300 million to the government.
The revenue represents a 63% increase from N$1.9 billion generated in the 2021/22 financial year.
The diamond marketing company, netted a gross profit of N$628 million during the period under review and a profit after tax of N$409 million.
The improved revenue generation from nine sales alluded to an increase of 15.3% in diamond Standard Selling Value, rising from an average buying price of US$581 per carat to US$669 average selling price.
“This was also aided by NAMDIA’s purchase entitlement increasing by 24.9% to 278,609 from about 240,000 carats in the previous financial year. This was because of increased production of Namibian diamonds after the inauguration of the Benguela Gem diamond recovery vessel in March 2022,” NAMDIA Chief Executive Officer Alisa Amupolo said at the launch of the annual 2022/23 financial report and dividends declaration on Wednesday.
“The new hybrid selling method is made up of 60% direct sales and 40% competitive bidding; which serves to optimise and obtain the best sales value for the Namibian diamonds.”
NAMDIA held its first competitive bidding sale in February 2022.
Still, in March last year, Amupolo said NAMDIA increased its client base from 16 to 36 based on the company’s outlined client selection policy.
While declaring dividends, NAMDIA Chairperson Bryan Eiseb highlighted that in 2021/22, N$150 million was declared, preceded by N$40 million in 2020/21. N$80 million was declared for 2019/20 while N$50 million in the 2018/19 financial year.
“This dividend represents more than just a financial transaction. It is a reaffirmation of our commitment to the people of Namibia, including our partnership with the government,” said Eiseb.
Despite the good performance, Eiseb warned the journey is bumpy and far from over due to the current global economic conditions posing a detrimental impact on consumer behaviour, more especially on luxury goods.
“The international diamond market is on its back foot and remains fragile and unpredictable. Apart from consumer behaviour, there are other factors such as the trade requirements for rough diamonds and revised import regulations being imposed in regions such as the EU, requiring the rethinking of our business,” he said.
Eiseb also says there is a downturn in prices of certain categories of diamonds, coupled with a slowdown in the Indian market on polished diamonds, which indicates stockpiling trends.
Meanwhile, the Deputy Minister of Finance and Public Enterprises, Maureen Hinda-Mbuende, who accepted the dividend on behalf of the government, said NAMDIA’s gesture goes beyond profit, but creates opportunities including fostering sustainable development and preserving the natural heritage.
“As we accept this dividend, we also acknowledge that with great success comes greater responsibility. It’s incumbent upon us as stewards of these resources to ensure they are utilised wisely. As a government, we reaffirm our commitment to supporting initiatives that promote responsible mining practices and sustainable development,” remarked Hinda-Mbuende.
Other projects undertaken by NAMDIA under the financial year review, include an investment of N$5.6 million in community initiatives, and N$2.8 million bursaries awards.
