Namakwa Diamonds’ revenues slumped to $27.3 million from $41.7 million last year, SmallCapNews.co.uk reported.

But the southern African diamond group managed to drive full year diamond production up by 72% to 46,741 carats, the report said.



Namakwa blamed the sales dip on diamond prices, demand and fewer mining days during the year. Its loss for the year, after impairments, totaled $87.2 million compared to a loss of $39.0 million in 2008.



In November 2008, the company scaled back production in its diamond mining segment to preserve cash and maximize long-term value. In February 2009, some of those mines were re-opened in the North West Province of South Africa, albeit at a scaled back level, to take advantage of an upturn in diamond prices. Those mines are now working on a cash positive basis, said the report.



Nico Kruger, Namakwa’s CEO, said: “Whilst the impact of the global economic crisis on the diamond industry was the dominating factor in the first half of this financial year, the second half has given cause for optimism and provided an indication of the growth and development of the company.”