April 18 (miningnamibia)-The net profit for Namibia's diamond company, Namdeb declined to N$143 million last year from N$305 million in 2006, the company said in financial results for the year ended 31 December 2007 released in Windhoek today.
“Production costs came under pressure during 2007 due to higher than anticipated fuel prices and salary increases granted as well as additional maintenance work required on the sea wall due to adverse weather conditions,” the company said. Namdeb said profit before tax decreased to N$776 million from N$1.2 billion in 2006 mainly due to the reduction in revenue and increased production costs, Namdeb said.
Diamond sales revenue at N$4.56 billion is 15 percent lower than in 2006 as a result of the reduction in carats sold, combined with the effect of the price correction in the rough diamond market in the second half of 2006, the company said.
“Production exceeded 2 million carats for the second year in a row at a 4 percent improvement on 2006 but as a result of production schedules carat sales were 5 percent below those of 2006,” the company said.