Image credit: Namdia
It said in its financial statement for the year ended 31 March 2020 that the decline in purchase entitlement saw sales revenue going down by 16% to $140.2 million.
The company’s margins were lower at 2.3% on average during 2019 compared to 3.9%, the previous year.
“Despite these tough times, when most rough diamonds were sold at cost (list price) or at a loss in the secondary market, NAMDIA continued to turn a profit, albeit at lower margins,” it said.
The profile of the Namdia entitlement is mostly made up of small stones.
On average, 76.5% comprised of stones weighing below 2 carats and 23.5% above 2 carats.
The company is entitled to 15% of Namdeb’s total annual production of rough diamonds.
Meanwhile, Namdia chief executive Kennedy Hamutenya said the company acquired 50% of the midstream diamond cutting and polishing company, Namgem Diamond Manufacturing Company.
He said the acquisition was part of its strategic planning to get a better perspective on the global diamond value chain.
Namdia has the discretion to cut and polish some of its rough diamonds with the view to discover the market value of the polished outcome of its diamonds.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
