COVID-19 impact cuts into rough diamond sales during 2020/21 financial year
Diamond marketing and sales company, Namib Desert Diamonds (NAMDIA) managed to conduct six rough diamond sales totalling 144,967 carats for an average of USD 494.75 per carat, during 2020/21 financial.
The company’s full-year group profit after tax for the 2020/21 financial year amounted to N$13.3 million, down 86% from the prior year’s N$95.2 million, according to the company on Friday.
“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,” NAMDIA said in a statement.
This resulted in reduced rough diamond demand which led to declines in sales volume and softening of prices, they added.
According to the entity, an extraordinary impairment provision of N$30.9 million 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
The diamond marketing and sales company said that the ordinary profit before tax of NAMDIA amounts to N$73.7 million, down from N$150.2 million in the previous financial year, down by 51%.
Meanwhile, amid the torrid environment, NAMDIA said they managed to pay 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 the export levy, while N$40 million was declared as dividends to the government.