DIAMOND MINING: Profitability Returns At Trans Hex
Recent Western Cape Business News
Parow-based Trans Hex Group Limited (Trans Hex) announced its annual results for the period ended 31 March 2010, with it turn-around strategy successfully implemented and seeing good initial results.
"Our focus on cost management yielded significant reductions in operating costs. We also have a healthy net cash balance of R246 million,” says Trans Hex CEO, Llewellyn Delport.
Sales revenue of R716 million (2009: R637 million)
Cash operating costs reduced by R165 million
Mining income increased to R52 million (2009: R235 million loss)
Profit after taxation increased to R22 million (2009: R798 million loss)
Earnings per share from continuing operations increased to 23,8 cents (2009: loss per share of 719,4 cents)
Net cash generated of R40 million (2009: R11 million generated) resulting in the group’s net cash position increasing to R246 million (2009: R205 million)
Revenues improved by 12.5% as a result of increased volumes and higher diamond prices from the South African operations despite the stronger Rand/Dollar exchange rate.
Continued cost reductions saw cash operating costs decrease by R165 million. Trans Hex also built on its return to profitability from the half year, to record a profit after tax of R22 million for the year ended 31 March 2010.
The Group’s cash position increased to R246 million and would have been R307 million if the 10% lots of diamonds held at the State Diamond Trader, valued at R61 million, had been sold during the current financial year. Cash generated by operations amounted to R141 million for the year ended 31 March 2010.
Production from the Group’s South African operations showed improvement increasing from 88,933 carats to 92,904 carats as a result of higher grades being achieved and despite the rationalisation of operations. Total sales attributable to these operations amounted to $91 million, achieved at an average sales price of $957 per carat. The South African operations are expected yield around 100,000 carats in the 2011 financial year.
At Luana, Angola, pilot mining continued during the year and at year end 31,822 carats were available for sale. The Laurica and Facauma mines were under care and maintenance during the financial year.
Business News Sector Tags:
Fax 2 Email
Study IT Online
Work from Home