Debmarine in historic diamond production
Company claims 80% of entire national production
Earnings before interest, depreciation and amortisation increased by 168% to N$6.7 billion.
Namibia's newest - and the world's most technologically advanced - recovery ship, the Benguela Gem, yielded 480 000 carats of diamonds for the 2022-23 financial year.
The ship's expected production for this financial year was 281 000 carats, and the Benguela Gem made a significant contribution to Debmarine Namibia's total diamond production of 1.725 million carats for 2022.
This was the highest diamond production in the company's history, and equal to 80% of Namibia's total diamond production for the year.
CEO Willy Mertens announced these figures last Thursday during Debmarine’s annual meeting for stakeholders at Droombos just outside the capital.
According to Mertens, the performance indicates an increase of 52% from 2021 when the company was able to deliver 1.136 million carats.
The Benguela Gem contributed 28% to Debmarine's total diamond production in 2022.
However, the Mafuta mining vessel made the biggest contribution, with 613 000 carats - or 36% of Debmarine's diamond production for the financial year.
Another five drill ships in Debmarine's fleet collectively delivered another 632 000 carats of diamonds.
"One of the reasons why we undertook the Benguela Gem project was to reduce the risk of being dependent on the Mafuta, and I am pleased to report that we have succeeded," Mertens said.
Innovation, tech investment
According to him, Debmarine’s production for 2022 is more than three times the 506 000 carats the company was initially able to supply with six vessels.
Continuous innovation and investments in technology, along with the latest vessel, made the achievement possible, he said.
Mertens added that the company aims to continue making the most of its Atlantic 1 mining licence area in the future.
Atlantic 1 promises to be able to deliver another 33 million carats over the next 36 years, until 2057, he said.
Furthermore, Debmarine was able to increase its income by 83% last year compared to 2021, Mertens said, which equals N$13.2 billion compared to 2021’s N$7.2 billion.
This was thanks to increased production, positive consumer demand (12%) and the weakening of the Namibian dollar against the US dollar (20%), he elaborated.
Earnings before interest, depreciation and amortisation (EBITDA) increased by 168% to N$6.7 billion, thanks to increased income versus reduced costs. Profitability has increased from 35% to 51%, he said.
Capital expenditure reduced by 79% to N$540 million due to the completion of the Benguela Gem project.
President Hage Geingob officially inaugurated the Benguela Gem on 18 March 2022.
Largest contributor
Meanwhile, free capital grew to N$3.6 billion, which allowed the payment of dividends to shareholders totalling N$3.1 billion, Mertens said.
The Namibian government, as a 50% shareholder together with diamond giant De Beers, therefore earned a total of N$4.7 billion from Debmarine for the 2022 financial year, including taxes and royalties.
The company further spent N$1.2 billion on salaries for the year, N$3.5 million on local procurement, N$35 million on social investment, and N$718 million on investors who provided financing to the company.
Since 2018, Debmarine has contributed a total of N$13.8 billion to Namibia's treasury, Mertens noted, adding that the company is the single largest contributor to government income apart from the Southern African Customs Union.
At the event, Debmarine board chairperson Dr Ndeulipula Hamutumwa said the company is a national icon, employing more than 1 100 highly qualified employees, and is recognised by the finance ministry and the Namibia Revenue Agency (NamRA) as the largest contributor to value-added tax (VAT) and corporate income tax.
Namibians can also be proud that the country “is the world's leading offshore [diamond] mining nation," he said.
– [email protected]
The ship's expected production for this financial year was 281 000 carats, and the Benguela Gem made a significant contribution to Debmarine Namibia's total diamond production of 1.725 million carats for 2022.
This was the highest diamond production in the company's history, and equal to 80% of Namibia's total diamond production for the year.
CEO Willy Mertens announced these figures last Thursday during Debmarine’s annual meeting for stakeholders at Droombos just outside the capital.
According to Mertens, the performance indicates an increase of 52% from 2021 when the company was able to deliver 1.136 million carats.
The Benguela Gem contributed 28% to Debmarine's total diamond production in 2022.
However, the Mafuta mining vessel made the biggest contribution, with 613 000 carats - or 36% of Debmarine's diamond production for the financial year.
Another five drill ships in Debmarine's fleet collectively delivered another 632 000 carats of diamonds.
"One of the reasons why we undertook the Benguela Gem project was to reduce the risk of being dependent on the Mafuta, and I am pleased to report that we have succeeded," Mertens said.
Innovation, tech investment
According to him, Debmarine’s production for 2022 is more than three times the 506 000 carats the company was initially able to supply with six vessels.
Continuous innovation and investments in technology, along with the latest vessel, made the achievement possible, he said.
Mertens added that the company aims to continue making the most of its Atlantic 1 mining licence area in the future.
Atlantic 1 promises to be able to deliver another 33 million carats over the next 36 years, until 2057, he said.
Furthermore, Debmarine was able to increase its income by 83% last year compared to 2021, Mertens said, which equals N$13.2 billion compared to 2021’s N$7.2 billion.
This was thanks to increased production, positive consumer demand (12%) and the weakening of the Namibian dollar against the US dollar (20%), he elaborated.
Earnings before interest, depreciation and amortisation (EBITDA) increased by 168% to N$6.7 billion, thanks to increased income versus reduced costs. Profitability has increased from 35% to 51%, he said.
Capital expenditure reduced by 79% to N$540 million due to the completion of the Benguela Gem project.
President Hage Geingob officially inaugurated the Benguela Gem on 18 March 2022.
Largest contributor
Meanwhile, free capital grew to N$3.6 billion, which allowed the payment of dividends to shareholders totalling N$3.1 billion, Mertens said.
The Namibian government, as a 50% shareholder together with diamond giant De Beers, therefore earned a total of N$4.7 billion from Debmarine for the 2022 financial year, including taxes and royalties.
The company further spent N$1.2 billion on salaries for the year, N$3.5 million on local procurement, N$35 million on social investment, and N$718 million on investors who provided financing to the company.
Since 2018, Debmarine has contributed a total of N$13.8 billion to Namibia's treasury, Mertens noted, adding that the company is the single largest contributor to government income apart from the Southern African Customs Union.
At the event, Debmarine board chairperson Dr Ndeulipula Hamutumwa said the company is a national icon, employing more than 1 100 highly qualified employees, and is recognised by the finance ministry and the Namibia Revenue Agency (NamRA) as the largest contributor to value-added tax (VAT) and corporate income tax.
Namibians can also be proud that the country “is the world's leading offshore [diamond] mining nation," he said.
– [email protected]
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