Beleaguered diamond miner Namakwa Diamonds (NAD) is in advanced discussions to sell its entire portfolio in the Democratic Republic of Congo (DRC), sending its shares plummeting nearly 60%.

In a statement on Thursday, the AIM-listed company said it was determined to “extract maximum value and minimise cash outflow for shareholders” and would provide a further update in due course.

The decision to sell follows disappointing operational results from the region, including 49 days of lost operation during the period from 1 March to 31 May and below-par recovered grades.

The company also informed investors that the $30 million (c£18.5 million) committed facility announced in July is no longer available on the terms discussed, prompting it to seek alternative funding sources.

Namakwa, which launched a strategic review back in June, has been forced to reorganise its trading and beneficiation division’s current activities and wind up all diamond trading joint ventures, including a $17 million charge in respect of capital invested by Jarvirne Limited.

The company, which operates in Botswana, South Africa and the DRC, said its South African operations had been impacted by declining grades and increasing operating costs and as such, it has decided to move from an owner operator model to a contractor model.

The board has also undergone an overhaul, with Nico Kruger stepping down from his role as chief executive officer, to be replaced by Richard Collocott, previous chief financial officer, with immediate effect.

In addition, the chairman of the board of directors, Hans Smith, and the chairman of the Audit, Risk and Compliance Committee, Dirk van Staden, have both resigned.

Despite this, the company said its Phase 1 commercial operations at the Kao kimberlite mine in Lesotho are on budget and scheduled to commence in mid-October, just a couple of weeks later than previously anticipated despite a series of strikes in South Africa and heavy snowfalls.

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