…as NAMDIA sets news pathways for growth, diamond price discovery
Newly appointed Namib Desert Diamond (Pty) Ltd (NAMDIA) CEO, Alisa Amupolo has highlighted that in the next five years, NAMDIA will look to partnering with a unique and distinctive collection of industry players and leveraging on the global reservoir of knowledge through smart partnerships.
Her maiden speech as CEO which came at the backdrop of NAMDIA having declared their biggest dividend to government to date – N$150 million – further emphasised that NAMDIA was indeed embarking on a new phase of transformation.
“Key consideration will particularly be given to; expanding horizon in fulfilling mandate of price discovery, modifying and differentiating demand for Namibian diamonds and engaging the global and domestic market to strengthen market share.
“We will harness every opportunity, strengthen existing bonds, cement new alliances and foster new partnerships which will enable us to compete in the global and domestic market, to increase market share and create value for all Namibians,” Amupolo said.
She went on to state that NAMDIA’s price discovery mandate is not only rough diamond specific and the firm’s maiden smart partnerships with one of its sight holders had heralded Eumbo Star which creates meaningful synergies and maximizes the value of this exceptional stone.
“We are confident that this is the first of many future collaborations as we catapult our model towards value addition through distribution channel partnerships. Through these agreements, NAMDIA will establish its global brand identity and bring us ever closer to discovering the true value of Namibia’s diamonds in the global diamond value chain.
Namibia is one of the most privileged nations in the world with an abundance of natural resources and our highly sought after diamonds and its alluvial beauty is no exception. By leveraging on the intrinsic value of our resources, Namibia has the capabilities to become a globally recognized player on the world stage and set the gold standard in ethically and sustainably sourced diamonds. It is our responsibility to ensure that every Namibian benefits from our economy’s stalwart and as custodians of these precious gems, NAMDIA is resolute in its pursuit for an inclusive and prosperous social and economic ecosystem that reaps the benefits of our industry’s diligence,” further explained Amupolo.
She also noted that NAMDIA has proven that it is possible to fetch a premium for quality diamonds further expressing that NAMDIA’s price discovery mechanism has also revealed that there is still a lot to be accomplished and that the company has a long journey ahead, as it explores the value chain to unlock the true brilliance and worth of Namibian diamonds.
“This undertaking is truly patriotic and one that every single Namibian should be proud of. The seeds that we are sowing today, will be reaped by generations to come and establish a legacy that will continue to produce exceptional returns for our nation.
I would like to take this opportunity to thank our clients who have once again reiterated their loyalty to our brand and product; even during global uncertainty. We might have one of the best diamonds in the world, but if there are no sight holders to sell them to, we would not survive nor be sustainable. I wish to congratulate my fellow NAMDIANS for yet another prosperous and impactful year. Your hard work and commitment in our quest to create a Namibian footprint in the global diamond value chain and establishing the best value for our diamonds is truly inspirational and I am humbled to be part of this great team,” Amupolo said.
STELLAR PERFORMANCE
Last week, NAMDIA released its audited Annual Report for the 2021/22 financial year subsequently declaring a dividend of N$150 million to its shareholder, the government.
After two particularly challenging years shaped by the COVID-19 pandemic, the remarkable recovery of the diamond industry came as a welcome relief, the company said.
The reporting period saw NAMDIA continuing to improve operational efficiency and refine business strategy in order to remain relevant to customers and the shareholder.
Essentially, profit after tax amounted to N$144.7 million, compared to N$13.3 million the previous year.
In other key growth statistics, NAMDIA conducted 10 sales in the 2021/2022 financial year and in line with the recovery in the industry, NAMDIA margins improved to 7.0 percent above the 100 percent SSV during the period.
Furthermore, NAMDIA purchase volumes totalled 222,978 carats, an increase of 53.8 percent compared to the previous year. Equally, sales revenue increased by 78.7 percent to US$128 million.
The buying average carat price was US$536.55 compared to the selling average carat price of US$574.21.
“36 new clients were selected for 2022/2023 – 2025/2026,” the company also emphasised.
In the same period, NAMDIA recorded N$218 million profit before tax while N$40 million dividend was paid to the shareholder on 05 November 2021 based on 2020/2021 financial year.
At the same time N$ 244,840 was invested in staff training and development.
“NAMDIA is in a very sound financial position, with cash reserves amounting to N$395 million at year end. Reserves are maintained for future expansion of activities and as required collateral for banking facilities in the absence of a Government guarantee.
“NAMDIA purchases its 15 percent entitlement from Namibia Diamond Trading Company (NDTC) using a revolving overdraft facility which settles upon the sale of goods. The US Dollar banking facility with RMB Namibia was renewed in December 2021 at US$27 million and is secured by collateral of a 12-month Fixed Deposit placed with RMB for N$145 million. The facility incurs interest at a credit margin above LIBOR,” further stated NAMDIA.