Namakwa reduces FY 2012 loss to $41 mln

Namakwa Diamonds said it reduced its loss for the fiscal-year ended 31 August 2012 by 47 percent to $41.2 million.
The company recorded a net loss of $76.74 million during the same period last year.
The FY 2012 loss, it said, included an impairment to the carrying value of Kao mine in Lesotho of $10.39-million, losses from discontinued operations of $2.67-million and net financing costs of $4.32-million.
Namakwa also said that its revenue fell 41 percent year-on-year to $51.02 million for the period under review due to the reduction of third party trading and increased contributions from the Kao mine.
Namakwa chief executive Theo Botoulas said the company’s objective during the period under review had been to establish sustainability at the core of the company to ensure future success.
“The main aims were to cut costs, establish Phase 1 production of the Kao mine and restore the company to profitability,” he said.
“I am pleased to report to shareholders that we have indeed made considerable progress to achieve these goals, ensuring we are in good stead for the coming year to deliver quality production in fiscal year 2013.''
Meanwhile, Namakwa said its Lesotho operation, which commenced commercial diamond production in March, produced 121,521 carats.
The mine also sold 87,010 carats at an average price of $283 per carat.
Namakwa said it restructured its operations in South Africa, where it produced 23,830 carats of which 21,054 carats were sold at an average price of $919 per carat.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished