Industry News
Namakwa Diamonds capitalising on buyers' market
15/01/2009
By: MonAM
Namakwa Diamonds says it expects to take advantage of buying opportunities presented by a current shortage of rough diamond supply.
'Due to the continued depressed state of the diamond market, opportunities to buy rough and polished goods at greatly reduced prices from distressed mining companies and dealers will continue,' says Namakwa.
'This creates opportunities for players like Namakwa which hold unleveraged diamond inventory and sufficient cash reserves to polish its own rough inventory and capture polished margins.'
Meanwhile the miner is reviewing its own North West operations and says it is likely some will be placed on care and maintenance and others may be significantly reduced.
Its figures for the first quarter, beginning September 1, show production up 2.7% quarter on quarter and higher than expected recovered grade.
Cash on hand fell to $26.7m from $52.0m in the previous quarter as the capital expenditure programme in the North West neared completion.
Diamond inventory increased by 12% to $55.0 million as firm took advantage of buying opportunities and positioned for anticipated supply weakness.
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