The Namdeb Diamond Corporation released its 2009 performance report over the weekend.

According to a company press release, the diamond firm found that just as the luxury goods sector, the diamond industry was severely affected by the global recession, and that diamond trade suffered from lower levels of retail and consumer demand.

Namdeb also noted that 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 for diamonds 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, the company's statement said. Industry inventory and debt levels reduced as the year progressed, positioning Namdeb to benefit from improvements in consumer demand.

Namdeb Managing Director Inge Zaamwani-Kamwi reviewed the company's performance in 2009: Namdeb carat sales last year dropped by 25%, as diamond production decreased by 56% - figures attributed to the recession.

Diamond sales revenue, which came to N$3.37 billion, were 40% lower than in 2008; pre-tax losses amounted to N$555 million, mainly due to the decrease in revenue, and production costs for Namdeb came to N$2.82 billion.

Zaamwani-Kamwi added that 2010 will see the diamond company continue to take a cautious and prudent approach to production and sales levels.

Consumer demand for diamond jewellery is beginning to recover, he said, especially due to 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.