Namakwa Diamonds, which started production from its Kao mine, in Lesotho last November is now set to become the biggest producer of diamonds in the southern African country in the next 12 months.
“Whilst operational challenges have been faced at Kao during this period, we are pleased to note that sufficient value enhancing steps have been taken to allow the Group to become the biggest producer of diamonds in Lesotho in the next 12 months and to become net cash generative in H2’ 2012, company chief executive Richard Collocott said.
He said the first half of the financial year had been about the successful execution of the company’s strategy to restructure its platform to provide for a mining operation underpinned by sustainable commercial production from the Kao Mine.
Namakwa said instead of drawing from the Jarvirne facility to facilitate the continued development of the Kao mine into a net-cash generative operation, the company had entered into the $10-million Sputnick facility, which remained available until the end of May.
It said its year-to-date production at 48,520 carats on 24 April 2012 while financial year 2012 production target was 170,000 ct.
Namakwa also owned alluvial operations in South Africa’s North West province.
Meanwhile, the diamond junior recorded a 60 percent fall in revenue for the 2012 first half, which ended on February 29.
It said a significant reduction in third-party trading activities within the trading and beneficiation segment, saw earnings for the period slump to $16.95-million from $42.1-million in the previous corresponding six months.
A loss of $11.48-million was also recorded in earnings before interest, taxes, depreciation, and amortisation for the reporting period, up from a loss of $3.13-million in the first half.
Further, net loss was $15.40-million, compared to $11.91-million in the first six months of the company’s 2011 financial year.
This included discontinued operations in the Democratic Republic of Congo.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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