NAMDEB ANNOUNCES 2006 INTERIM RESULTS Namdeb announced its interim results for the six months ending 30 June 2006 during a media conference held in Windhoek on 5th September 2006. Namdeb Managing Director Inge Zaamwani highlighted that the company continues to invest substantial capital on an annual basis in order to find new reserves and discover ways of economically mining and treating previously uneconomic reserves, thereby extending the life of the land operations.

According to Ms Zaamwani, several strategic projects like Elizabeth Bay, Inshore, Marine dredging and Pockets Beaches Sites 11 &12 progressed during the first half of 2006. These projects will, apart from extending the life of land based mining, also secure continued employment for many Namdeb employees. Carats produced up to June 2006 increased by 22% and is attributed to an increase in land-based production at the mine’s No. 3 Plant and Pocket Beaches. The average diamond price per carat increased by 3%, notwithstanding a 7% decline in average stone size of the diamonds for the six months. The diamond sales revenue has increased by 25% to N$2,6 billion compared to the first six months of last year, which was at N$2,1 billion and this was mainly due to the increase in carats sold. The cost of sales has increased to N$1,6 billion from N$1,2 billion and this was impacted by higher equipment expenses, fuel price increases and normal inventory fluctuations. Prospecting and R&D include a substantial investment in the future especially on the Marine Dredging project. Other operating expenses increased due to depreciation charges.Taxes accrued to the State for the half year amount to N$400 million, similar to that of 2005, while the total Taxation represents 92% of pre tax profits (2005:74%).           No interim dividend has been declared to the Shareholders, against the background of substantial capital expenditure intended to ensure Namdeb’s future sustainability. The capital expenditure for the year is currently estimated at some N$800 million. To view the results, click here.