The most difficult trading environment in its 30-year history led diamond-miner Namakwa Diamonds to report a net loss of $76.7 million in the half year ending February 28. The loss is a 300-percent increase on the net loss of $19.4 million for the same period last year.

Namakwa Diamonds said rough diamond prices fell 40-70 percent during the six-month period. Namakwa put four of its mines on a care-and-maintenance basis while carrying out several cost-cutting measures during the half-year period.

The company said that in comparison to the year-earlier period when it carried out major expansion projects, the fall in diamond prices led it to look for ways of keeping hold of its cash.

“The impact of the global economic crisis on the diamond industry in the first half of this financial year has been substantial and has been the dominant factor over this period,” CEO Nico Kruger said in a statement to shareholders “There has been a considerable drop in both rough and polished prices.”

Namakwa Diamonds the reduced supply of rough diamonds, estimated to be 40-50 percent year-on-year, would have a positive effect on prices in the long term.

The firm said that its mining operations were alluvial, it would be able to quickly recommence work when markets turned around without the need for large amounts of extra capital. It also forecast it would be able to find work again for some of the workers that it has fired.

Credit is given to AFNS by DiamondTopics.com (Cached News)