Namakwa Diamonds reopens North West mines

In light of the improving price of diamonds, Namakwa Diamonds has reopened four alluvial diamond mines in North West Province.

Due to a major write-down in the value of their diamond inventory, Namakwa made an overall loss of $87.2m for the year to end-August. This was as a result of the major drop in rough diamond prices.

Despite this, CEO Nico Kruger said Namakwa remained in an “enviable” position. He noted that Namakwa still had a healthy amount of cash reserves and net working capital of $44.8m. The improving financial performance in the latter part of their financial year also served to bolster confidence. 

Kruger finally said that, “The current disjoint in rough and polished prices has presented opportunities which the group will continue to capitalise on in both rough and polished stones. Furthermore, opportunities for the acquisition of distressed assets are expected to continue to arise.”

Reported by Mining MX

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