NAMIBIAN RESOURCES Plc has announced its final results for the year ended 28 February 2010.
The year to 28th February 2010 was disappointing as expected due to the cessation of production at Sonnberg following the near collapse of the international diamond market and soaring fuel costs. Our staffing was greatly reduced and care and maintenance only was carried out throughout the year.
During the current financial year diamond prices have improved and although limited our production both in terms of diamond size and value has increased considerably. Pending the conclusion of our ongoing efforts to raise additional financing the Directors are demonstrating their determination to achieve profitability by continuing to fund the company with interest free unsecured loans. Negotiations with potential investors are continuing and we will report again on progress when appropriate.
“In October last year we reported on the severe downturn in the diamond market causing a severe impacton our operations with the cessation of all our operations in Namibia. Sonnberg mining and sampling was terminated and our operations were put on a care and maintenance basis due to the uncertainty of realised diamond values. Care and maintenance only was maintained throughout the year to 28th February 2010.
Production on a much-reduced scale was recommenced in April this year. Although production has been low since this time we are very encouraged by the prices that we are now receiving for production during the current financial year. We are continuing to progress our efforts for financing options to upgrade our mining operations and to seek additional resources for development. We are having ongoing discussions with potential investors to provide the necessary funds. A mining plan is in place to take us through to early 2011 on identified deposits. In the meantime the Directors have continued to support the company with unsecured interest free loans which totalled £597,500 at 28th February 2010.”
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