Africa-Press – Namibia. THE state-owned Namib Desert Diamonds (Pty) Ltd will pay N$150 million to the state as its 2022 finacial year dividend.
This is more than its N$144 million earned after tax profit, but not new to its culture of paying way more than what is left as profit.
Such payments are normally made out of reserves, and to date the N$150 million is a record dividend since the company started operations in 2017.
Last year, despite making a profit of only N$13 million, the company paid a N$40 million dividend.
The dividend, as announced yesterday, is on the back of serious fiscal pressures for the treasury, yet the company said it was not pressured to pay much over its surplus.
Newly appointed chief executive officer Alisa Amupolo said the 2022 financial year was a rewarding one – with sales margins improving.
She said the company earned a 7% sales margin, after a series of margins that never broke the 6% internal set target.
Namdia purchases its 15% entitlement from Namibia Diamond Trading Company (NDTC) using a revolving overdraft facility which settles on the sale of goods.
Diamonds are sold in US dollar, and the company has a banking facility with RMB Namibia which 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 the London Interbank Offered Rate (Libor), and not even this debt facility deterred the company from paying such a big dividend.
Amupolo and the company’s board chairperson, Brian Eiseb, said the company is still growing and remains on a path to discovering the true value of Namibian diamonds.
Eiseb, however, wants as many diamonds to be sold locally, and urged Namdia’s sales team to focus on local companies that should be prioritised in taking up much of the diamonds so as to keep value addition within Namibia’s borders.
The company appointed 36 new clients for the next three years during this financial year, representing all major diamond centres around the world.
The company said this wide variety of clients ensures collaboration with specialists throughout the diamond pipeline and is crucial for Namdia to effectively tell the Namibian diamond story.
“Furthermore, it will support the price discovery objective and enable us to scale a variety of clients in relation to only a smaller group of clients,” said Eiseb.
Eiseb, whose term comes to an end in December, said the financial year saw the successful roll-out of the performance management system, which ensured optimal performance of staff and a balanced method for reviewing performance.
He and his board members did not renew the contract of former Namdia chief executive officer Kennedy Hamutenya, after his contract expired this year.
THE NUMBERS
During the 2022 financial year, which ended in February, the company sold diamonds worth N$1,9 billion after buying them for N$1,7 billion from NDTC.
This is a massive increase on the sales front from just N$1,1 billion earned for the 2021 financial year.
Profit before tax was recorded at N$218 million for the financial year, and N$244 840 was invested in staff training and development.
Cash reserves were at N$395 million at year-end, which the company said are maintained at such levels for the future expansion of activities and as required collateral for banking facilities in the absence of a government guarantee.
The company purchased volumes totaling 222 978 carats, an increase of 53,8% compared to the previous year, and pushed them out through 10 cycle sales.
The buying average carat price was US$536,55, compared to the selling average carat price of US$574,21.
According to the executives, the company has invested over N$30 million on various corporate social responsibility initiatives since inception.
Total assets stood at N$534 million at year-end.
The full annual report is available on the company’s website.
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This is more than its N$144 million earned after tax profit, but not new to its culture of paying way more than what is left as profit.
Such payments are normally made out of reserves, and to date the N$150 million is a record dividend since the company started operations in 2017.
Last year, despite making a profit of only N$13 million, the company paid a N$40 million dividend.
The dividend, as announced yesterday, is on the back of serious fiscal pressures for the treasury, yet the company said it was not pressured to pay much over its surplus.
Newly appointed chief executive officer Alisa Amupolo said the 2022 financial year was a rewarding one – with sales margins improving.
She said the company earned a 7% sales margin, after a series of margins that never broke the 6% internal set target.
Namdia purchases its 15% entitlement from Namibia Diamond Trading Company (NDTC) using a revolving overdraft facility which settles on the sale of goods.
Diamonds are sold in US dollar, and the company has a banking facility with RMB Namibia which 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 the London Interbank Offered Rate (Libor), and not even this debt facility deterred the company from paying such a big dividend.
Amupolo and the company’s board chairperson, Brian Eiseb, said the company is still growing and remains on a path to discovering the true value of Namibian diamonds.
Eiseb, however, wants as many diamonds to be sold locally, and urged Namdia’s sales team to focus on local companies that should be prioritised in taking up much of the diamonds so as to keep value addition within Namibia’s borders.
The company appointed 36 new clients for the next three years during this financial year, representing all major diamond centres around the world.
The company said this wide variety of clients ensures collaboration with specialists throughout the diamond pipeline and is crucial for Namdia to effectively tell the Namibian diamond story.
“Furthermore, it will support the price discovery objective and enable us to scale a variety of clients in relation to only a smaller group of clients,” said Eiseb.
Eiseb, whose term comes to an end in December, said the financial year saw the successful roll-out of the performance management system, which ensured optimal performance of staff and a balanced method for reviewing performance.
He and his board members did not renew the contract of former Namdia chief executive officer Kennedy Hamutenya, after his contract expired this year.
THE NUMBERS
During the 2022 financial year, which ended in February, the company sold diamonds worth N$1,9 billion after buying them for N$1,7 billion from NDTC.
This is a massive increase on the sales front from just N$1,1 billion earned for the 2021 financial year.
Profit before tax was recorded at N$218 million for the financial year, and N$244 840 was invested in staff training and development.
Cash reserves were at N$395 million at year-end, which the company said are maintained at such levels for the future expansion of activities and as required collateral for banking facilities in the absence of a government guarantee.
The company purchased volumes totaling 222 978 carats, an increase of 53,8% compared to the previous year, and pushed them out through 10 cycle sales.
The buying average carat price was US$536,55, compared to the selling average carat price of US$574,21.
According to the executives, the company has invested over N$30 million on various corporate social responsibility initiatives since inception.
Total assets stood at N$534 million at year-end.
The full annual report is available on the company’s website.
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