The future seems bright for Diamond production in Zimbabwe. This is according to the Zimbabwe Consolidated Diamond Company, which recorded a profit of US$26,35 million on production of 151,3kg of diamonds for the first half of this year. This shows profits to be more than 40 percent of the diamonds sold.
A report to Parliament says that the company made a profit of US$26 356 890 and it is on track to attain its year-end target of getting a profit of US$62 119 436.
Despite the company missing its half-year production aim, it was assisted by improved prices, hence obtaining an average of US$85,6 for each carat against an expected price of US$68,3. The firm anticipates to produce 3 044 050 carats (608,81kg) by the end of 2021.
In the six months, diamond sales yielded US$64 770 207, against a target of US$78 650 000. The expenses and costs therefore added up to just over US$38,4 million, or just under 60 percent of the revenue.
The company, in its report, also responded to concerns raised by Auditor General Mrs Mildred Chiri in her 2019 report which talked about the company’s inherited debts and how its managing them. According to her, the company didnt account for them.
The diamond company replied: “Consolidation of mining concessions in Chiadzwa resulted in some financial obligations being transferred onto the ZCDC balance sheet from former mining companies in which Government had an interest through Zimbabwe Mining Development Corporation, eg DMC and Marange.
“ZCDC has created a provision for all the doubtful debts owed by related parties, while a comprehensive debt management framework is being worked on, through the Ministry of Mines and Mining Development,” ZCDC said.
The firm has contracted an independent consultancy company to do a business valuation of its investment in DTZ-Ozgeo in order to accomplish a genuine and just position.