Namdia records 86 per cent reduction in profit for 2020/21 financial year

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Namib Desert Diamonds (Pty) Ltd (Namdia) said its full-year group profit after tax amounts to N.dollars 13.3 million, down by 86 per cent from the prior year’s N.dollars 95.2 million.

In a media statement on Friday, Namdia said its ordinary profit before tax amounts to N.dollars 73.7 million, down by 51 per cent from N.dollars 150.2 million in the previous financial year.

The company announced that it has declared a dividend of about N.dollars 40 million to Government after considering the results for the 2020/21 financial year.

Namdia for the financial year 2019/20 paid a dividend to Government amounting to N.dollars 80 million.

The statement said 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.

It added that this resulted in reduced rough diamond demand which led to declines in sales volume and softening of prices.

“The period under review had six sales totalling 144,967 carats for an average of US.dollars 494.75 per carat. Namdia paid the Ministry of Finance during the period under review, N.dollars 43.5 million comprised of N.dollars 32.2 million in income tax and N.dollars 11.3 million in export levy,” said the statement.

Source: The Namibian Press Agency