MINING: Trans Hex Shines Again
Recent Western Cape Business News
PAROW-based diamond miner Trans Hex swung dramatically back into the black for the half-year to end September, posting encouraging before tax profits of almost R25 million.
Local production in the interim period topped 33 000 carats – ahead of the comparable period last year when
32 300 carats were recovered.
Total sales attributable to the South African operations increased to $39.5 million (Sep 2010: $33m) at an average price of US$1.372 per carat – which is significantly higher than last year’s $901.
This means that in Rand terms Trans Hex’s revenue was up by 12% to R272 million – which indicates some vibrancy at the local operations.
Trans Hex CEO Llewellyn Delport said stripping operations at the Baken mine would be resumed in the second half of the year – albeit on a reduced scale.
He said the mine was still concentrating on lowering total costs and generating an acceptable margin, mainly by processing existing low grade stockpiles at increased throughput levels.
Delport estimated that South African production for the 2012 financial year was now expected to be in the region of 82 000 carats.
Delport’s upbeat forecast seems realistic after Trans Hex recently released a positive update in respect of its latest diamond sales.
The company’s October 2011 to December 2011 tender sales of South African production totalled R181 million. This entailed recovering 20 270 carats at an average price of $1 116 per carat.
Delport indicated that ten single stones were sold for an average price in excess of $10 000 per carat.
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