Namdeb First Half Sales Leap on Higher Prices, Production

Namdeb, De Beers Namibian mining company, sold 810,000 carats of rough diamonds during the first six months of the year, a 25 percent increase in volume terms over the same period last year.

The company called its production levels “a milestone achievement,” attributing them to innovative mining techniques and the commitment of its employees, but warned that its land reserves are nearing depletion.

Nearly half of the gem production was produced by De Beers Marine Namibia, which mines in Namdeb’s off-shore license – Atlantic 1.

Sales during the six-month period generated revenues of N$1,708 million ($257.54 million), 16 percent higher than during the first six months of 2003. Although higher revenues were helped by the increased carat sales and rising per carat price, they were partly offset by the strengthening Namibian dollar.

The company paid shareholders N$366 million ($55.19 million), which includes royalties, interim dividend and taxes.

Namdeb sold 1,358 000 carats of diamonds in 2003, generating N$2,937 million ($442.8 million).