WINDHOEK, NAMIBIA: Namdeb Diamond Corporation announced its Results for the year ended 31 December 2009.
Namdeb Managing Director, Inge Zaamwani-Kamwi, commenting on the overall industry, stated that in line with most products in the luxury goods sector, the diamond industry was severely affected in 2009 by the global recession. This was due to a combination of three principal factors - high stock levels throughout the diamond pipeline, constricted liquidity in the industry, and lower levels of retail and consumer demand - leading to substantially lower demand for rough diamonds. In the consumer markets global demand for diamond jewellery declined for the full year, although the fourth quarter showed an improved and positive trend on 2008.
Demand remained strong in the developing markets of India and China with US Christmas trading results showing the first year-on-year increase since September 2008. Industry inventory and debt levels reduced as the year progressed, positioning Namdeb to benefit from improvements in consumer demand.
On the outlook for 2010, Inge Zaamwani-Kamwi reported that 2009 presented some of the most challenging trading conditions the diamond industry has ever experienced. However, as a result of Namdebs' actions, production levels and cost base has been aligned with the reduced demand and inventory and debt levels reduced, and with better than expected consumer sales in the fourth quarter, sentiment has improved markedly from a year ago. However, Namdeb will continue to take a cautious and prudent approach to production and sales levels for 2010.
Consumer demand for diamond jewellery is beginning to recover, driven in part by the strength of the developing markets of China and India. However, with the fragility of the world economy and perceived weakness of the global recovery post recession, the company would only expect a gradual increase in production levels, sales and prices, said Zaamwani-Kamwi.

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