[miningmx.com] – TRANS Hex, a diamond producer, supported the 15% improvement in its shares earlier this week saying it expected to report a R94m swing in year-on-year taxed profit for the six months ended September.
“South African production increased by 48,5% from 21,849 carats in the corresponding period to 32,450 carats,” the group said in a trading statement published today. Sales revenue was 59,4% higher at R414m compared to R259.7m in sales in 2013.
The group announced on October 29 that it had finalised the purchase of Namaqualand diamond mine from De Beers, a transaction that has been more than two years in the making.
Net interim profit would be R35.8m compared to a loss of R53.9m in the interim period of its 2013 financial year. Headline share earnings would come in at 34 cents compared to a loss previously of 51c/share.
From a balance sheet perspective, net cash increased to R351.1m, a R57m increase over the net cash end-September in 2013.
Trans Hex said the improvement in earnings translated into a 91c/share increase in its net asset value per share to 541c compared to 450c in September last year. The firm’s share price is currently trading at 384c/share.
Commenting on the purchase of the Namaqualand property, Trans Hex CEO, Llewellyn Delport told BDLive earlier this week that: “From where we are sitting, the timing for this transaction is clearly very good”.
“It allows Trans Hex to continue mining in that region [Lower Orange River] and with it will come more opportunities either here or elsewhere,” Delport added.
“If the transaction was to have come later, we were running the risk of Trans Hex running out in the Lower Orange and not having ground in South Africa to ply our trade on,” he said.
The transaction value is largely associated with Trans Hex assuming the rehabilitation liability of R166m, said BDLive.
