Work hard and you will find success

Eduard Utkin, Director General of the “Jewellers’ Guild of Russia” Association, expert of the RF Chamber of Commerce and Industry’s Committee on Precious Metals and Precious Stones, told R&P about implementing the SIIS PMPS (State Integrated Information...

Yesterday

GOLDNET.MARKET - “We want and are working to provide business with the opportunity to develop a lot of activity areas”

Today, almost all jewellery companies have their own wholesale websites, online stores, and social media pages. But a year ago, GOLDNET.MARKET, the first jewellery wholesale marketplace appeared in Russia, a new effective tool for the jewellery market...

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Platinum’s rare nature gives it additional value and appeal

Huw Daniel is the CEO of Platinum Guild International, overseeing market development activities in China, Japan, India and the USA, on behalf of the platinum producers of South Africa. Before taking up this role in 2015, Huw ran PGI USA for 12 years...

13 september 2021

Marco Carniello: We want to continue to be the engine boosting the jewellery industry

Italian Exhibition Group (IEG) is a leader in Italy in the organisation of trade fairs and one of the main operators in the trade fair and conference sector at European level, with structures in Rimini and Vicenza, as well as further sites in...

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There is a significant need for smart and technological financial solutions in the diamond industry

MDPS, the Israeli start-up Fintech company from the Mazalit Group is gearing up to enter the diamond industry soon. Zeev Maimon, the CEO of MDPS is also the Founder / CEO of MAZALIT, a B2B payment platform designed and dedicated to the global diamond...

30 august 2021

Namdeb Makes a U-Turn on Dividends for Shareholders

30 july 2009

A lack of cash support from the government and De Beers has forced Namdeb to retain the $6.4 million (NAD 51 million) in dividends it planned to pay out to its two shareholders for 2008, RAPAPORT reported citinh The Namibian. This, coupled with the recently requested royalty waiver, will help the company, "which is still experiencing challenges," Namdeb said in a statement yesterday. Roughly calculated, the waiver is worth about $71.4 million (NAD 565 million).
"In the absence of [a] cash injection by its shareholders, we believe that retention of dividends and a temporary waiver of royalty, for a company that holds immense future value for shareholders, are justifiable in order to preserve the core fabric of the business," Hilifa Mbako, group manager for external affairs, said. He could not be reached for more details on the lack of a cash injection. Namdeb asked the government and De Beers for "letters of comfort" for $82.1 million (NAD 650 million) to back up overdrafts at the local commercial banks earlier this year.
Namdeb's statement follows a report in The Namibian on Friday, which said that the company paid out $6.4 million (NAD 51 million) in dividends to government and De Beers. The money was, in fact, "retained as part of the cash preservation strategy and has not been paid out," Mbako said.
However, it was not mentioned anywhere in the one-page report on Namdeb's financial performance for the year that ended December 31, 2008, which was issued to the media and advertised in the local press, that these dividends were retained. Mbako said that Namdeb's year-to-date contribution through taxes exceeds the budgeted amount, and that the company "still holds immense potential to deliver more value to Namibia post the economic downturn."
"We hope that our stakeholders will therefore not take short-term decisions that could compromise future earnings from the diamond industry," he said. Mbako said that Namdeb's November sight was cancelled, and its December sight was "severely reduced" due to the global financial crisis. The latter is usually the largest sight.
"We ended the year with a large unsold stock. Our response was to curtail production with a view to sell the stock and preserve cash, hence the production interruptions," he said. The budget put forward for 2009 assumed significant reduction in production, revenue and operating activities, leading to a need to scale down on staff and other non-core activities.
According to Mbako, Namdeb's performance for the first six months of this year is slightly better than was anticipated despite the shrink in revenue, but is still materially lower than 2008. "The outlook for the remaining six months remains cautious. We have seen a steady increase [in] rough demand, but we believe it is too early to know if this will be sustained," he said. There has also been a marked improvement in sentiment and draw-down on rough inventory, and improved liquidity in the manufacturing part of the pipeline, he continued.
"However, demand for diamond jewel[ry] at the retail end remains subdued and trading [is] taking place on account of discounts," Mbako said. This has been exacerbated by the strengthening of the Namibian dollar, which has affected most export-oriented industries negatively, as well as increased fuel and power prices, the Namdeb spokesperson said. "Therefore, Namdeb's application for a royalty waiver must be seen in the light of the current global economic environment and the unique circumstances of the diamond industry, which is affected more severely than the other sectors of the economy," he said.