London-listed Namakwa Diamonds recently released its interim management statement, which shows that it had produced 82 925 ct for the 2010 financial year ended August 31.
Namakwa chief executive Nico Kruger said last October that the 2010 financial year was an important year for the development of the company.
“We have executed our stated strategy of consolidation, with acquisitions in the DRC and Lesotho, streamlined operations in the North West Province (of South Africa) and weathered the diamond market's perfect storm of 2009,” he said.
Increased output
Namakwa, which owns assets in South Africa, the Democratic Republic of Congo, Lesotho and Namibia said it was targeting a production profile from its current assets of 316 000 ct to 370 000 ct for the 2011 financial year.
It said that it would target continued increases in production from the same portfolio of mining assets to between 595 000 ct and 625 000 ct of diamonds in the 2012 financial year.
The diamond miner said that its current strategic focus was to increase volumes from its existing mining assets, in order to take advantage of the impending global shortages of supply.
Kruger said the financial year 2011 would see the company’s mining operations in the DRC and Lesotho ramped-up further, supported by consistent production from the North West Province, in South Africa.
Improved Sales
Namakwa also noted that the October 2010 sale results demonstrated the intrinsic value of an integrated downstream business, as mined product was parceled to appeal to a bespoke customer base, increasing returns on run-of-mine production estimations made by Venmyn in its 2010 Competent Person's Report.
It also noted that the prices achieved during the sale were significantly ahead of its expectations and demonstrated the shortage of the right product currently being demanded by the market.
“Namakwa Diamonds remains uniquely placed to take advantage of this downstream opportunity, with the ramp up in the company's production offering unique opportunities to the company's operations throughout the diamond value chain,” it said.
The company reported last October that its sales volumes went up 105 percent in rough to 442,067cts compared to 215,181cts recorded in 2009 and up 170 percent in polished to 3,818cts against 2009’s 1,416cts.
Beneficiation
Namakwa said its trading and beneficiation division would also continue to increase its footprint in the buying markets of Southern Africa and distribution channels in the strong Asian markets.
It said the performance of the division during the financial year 2010 continued to reflect the marked recovery in diamond prices, with strong demand throughout the period and weak industry supply.
“Demand from China for all levels of Namakwa Diamonds' Mining Division's product continues as the quality of product being mined improves with better geographical and operational data,” it said.
“This in turn is providing opportunities for the Trading & Beneficiation Division to enter into new sales channels in Hong Kong and Shanghai, as the volume and consistency in the company's product increases.”
Namakwa said whilst the polished market shows signs of recovery on the back of optimism on increased consumer spending from the key global markets, the Asian markets remained the focus for the company's polished product and the disparity between rough and polished product continues.
Mathew Nyaungwa, Rough&Polished, from Namibia
