Namdeb Production and Sales Slashed in 2009, Posts Loss

Namdeb MD Zaamwani-Kamwi (above) provided a cautious outlook for 2010

Namdeb Diamond Corporation, the De Beers joint venture with the government of Namibia, reported a 40 percent drop in revenue to N$3.37 billion (US$429.6 million) for 2009. The sharp drop in sales led the company to a pre-tax loss of N$555 million, compared to a N$1.98 million (US$0.25 million) profit in 2008.

The fall in sales, a result of the global economic crisis, led to a decrease in production. Namdeb cut production by 56 percent. The decrease in the volume of sales, 25 percent, allowed the company to lower its inventory carried forward from 2008.

Namdeb production costs were cut by N$1.41 billion (US$179.7 million) to N$2.82 billion (US$359.5 million) due to workforce reductions and production shutdowns.

In her outlook for 2010, Namdeb Managing Director Inge Zaamwani-Kamwi said the company will continue to take a cautious and prudent approach to production and sales levels despite the better than expected consumer sales in the fourth quarter and improved sentiment in the market.

“[T]he fragility of the world economy and perceived weakness of the global recovery post recession, the company would only expect a gradual increase in production levels, sales and prices,” said Zaamwani-Kamwi.