Namib Desert Diamonds (Pty) Ltd (NAMDIA) has announced a dividend declaration to its shareholder of N$40 million.
This is despite the huge losses and dip in business activity caused by Covid-19 restrictions during the year.
NAMDIA, who is a state-owned enterprise, reports that rough diamond sales were adversely affected by lockdowns and travel restrictions due to the Covid-19 pandemic, yet the company managed to post meagre profits.
The year 2020/2021 had some highlights though, which include six sales totalling 144,967 carats for an average of USD494.75 per carat; the full year group profit after tax amounts to N$13.3 million, down by 86% from the previous year’s N$95.2 million; the rough diamond sales were adversely affected by lockdowns and travel restrictions due to the 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.
Another highlight of the year was the extraordinary impairment provision of N$30.9 million which was raised on the acquisition of NamGem Diamond Manufacturing Company (Pty) Ltd. Before considering the impairment provision of N$30.9 million, the profit after tax amounts to N$44.2 million.
NAMDIA’s ordinary profit before tax amounts to N$73.7 million, down from N$150.2 million in the previous financial year, which is a fall by 51%.
“NAMDIA paid the Ministry of Finance during the period under review, N$43.5 million comprised of N$32.2 million in income tax and N$11.3 million in export levy. The NAMDIA Annual Report 2020/2021 publication will soon be available on our website www.namdia.com,” said Ms Beverley Coussement, NAMDIA’s public relations officer.
In the photo: NAMDIA CEO Mr Kennedy Hamutenya.