Namibia Desert Diamond (NAMDIA)’s after-tax profits surged by 988% to N$144.7 million in the 2021/2022 financial year up from N$13.3 million recorded in the previous corresponding period.
This was after the government-owned diamond sales and marketing company’s diamond sales revenue had increased by 78.7% to N$2,36 billion (US$128 million).
According to NAMDIA’s latest audited Annual Report, the company purchased 222,978 carats of diamonds in the period under review, a 53.8% increase, at an average price of US$536.55 with 10 sales conducted.
The diamonds were purchased as part of its 15% entitlement from the Namibia Diamond Trading Company (NDTC) using a US Dollar revolving overdraft facility with RMB Namibia settled upon the sale of goods renewed in December 2021 at US$27 million and secured by collateral of a 12-month Fixed Deposit placed with RMB for N$145 million.
The diamond sales company declared a N$150 million dividend to the government for the period, an increase from N$40 million declared in the previous year.
NAMDIA’s General Manager for Finance Sven von Blottnitz said the nearly fivefold increase was a result of good and retained earnings the company has achieved.
“NAMDIA is in a very sound financial position, with cash reserves amounting to N$395 million at year end. Reserves are maintained for future expansion of activities and as required collateral for banking facilities in the absence of a government guarantee,” Blottnitz said, adding that the company can only decide to declare dividends if it has enough funds that can sustain its operation for the next two years.
The diamond company’s newly appointed CEO, Alisa Amupolo, said while many industries still battle the aftereffects of the COVID-19 pandemic, NAMDIA was able to steadily navigate her way through the storm and deliver on their mandate.
“As we embark on the next five years and chart the future, we are looking forward to partnering with the unique and distinctive collection of industry capability that NAMDIA boasts and leveraging on the global reservoir of knowledge through smart partnerships.
“Therefore, in the new phase of transformation that we are embarking on, key consideration will particularly be given to; expanding horizon in fulfilling mandate of price discovery, modifying and differentiating demand for Namibian diamonds and engaging the global and domestic market to strengthen market share. We will harness every opportunity, strengthen existing bonds, cement new alliances and foster new partnerships which will enable us to compete in the global and domestic market, to increase market share and create value for all Namibians,” she said.
Amupolo added that NAMDIA’s price discovery mandate is not only rough diamond specific, but also on its maiden smart partnership with one of the sight holders has heralded Eumbo Star which creates meaningful synergies and maximises the value of this exceptional stone.
“We are confident that this is the first of many future collaborations as we catapult our model towards value addition through distribution channel partnerships. Through these agreements, NAMDIA will establish its global brand identity and bring us ever closer to discovering the true value of Namibia’s diamonds in the global diamond value chain,” she said.
Amupolo also revealed that N$244,840 was invested in staff training and development.
“It is our responsibility to ensure that every Namibian benefits from our economy’s stalwarts and as custodians of these precious gems, NAMDIA is resolute in its pursuit for an inclusive and prosperous social and economic ecosystem that reaps the benefits of our industry’s diligence,” said Amupolo.
