Key points
- Commercial production started at the Luderitz Bay licence, with 25,896 carats recovered in the first two months of production and a further 12,068 carats mined after year end, bringing total production to about 38,000 carats in three months against an annual target of not less than 150,000 carats.
- First diamond sales of 5,093 carats generated $900,000, and subsequent sales of 20,319 carats realized $3.3-million, at average prices of $180 and $160 per carat respectively, with diamond stocks of 22,500 carats on hand at year end.
- Total expenditure on the mining operation was $21.7-million, including $11.8-million of capital expenditure on the NamSSol mining system and $9.9-million on vessel charter, commissioning, personnel and other project costs.
- The company reported a loss of $7.1-million for the year, or 19 cents per share versus 9 cents in 1997, after $1-million of income and a non-recurring $3.25-million write-off of exploration costs in Angola and the Democratic Republic of Congo, with cash at year end of $3.9-million.
During the year commercial production commenced in the company’s Luderitz Bay mining licence, Namibia. In the first two months of production diamond recoveries were 25,896 carats. An additional 12,068 carats have been mined subsequent to year end. With total production of approximately 38,000 carats in a three month period, the company is achieving diamond recoveries in line with its mine plan. The plan calls for an annual production target of not less than 150,000 carats, placing the company as the leading independent diamond producer in Namibia.
First diamond sales of 5,093 carats during the year generated $900,000 and were set off against resource property costs. Diamond stocks at year end were 22,500 carats. Subsequent sales of 20,319 carats realized $3.3-million. The two sales have achieved an average price of $180 and $160 per carat respectively. Demand for the company’s high quality diamonds has remained firm.
During the year total expenditure on the mining operation was $21.7-million. This included capital expenditure on the NamSSol mining system of $11.8-million and a further $9.9-million on vessel charter, commissioning, personnel and other project costs.
The loss for the year was $7.1-million after accounting for income of $1-million and writing off $3.25-million of exploration and other costs in Angola and Democratic Republic of Congo, which is non-recurring expenditure. The loss per share is 19 cents (1997: 9 cents). Cash at year end was $3.9-million.
