[miningmx.com] – TRANS Hex followed its 50 cents per share special dividend of November with another payout, of some 10c/share, following a strong set of fulll-year results lending support to the view the diamond miner is on a sounder footing.
Earnings per share increased by 160,4c to 181,1c and headline share earnings were 68.8c higher at 78.6c for the year ended March 31 owing to the triple forces of higher production and prices for the South African mines and a weaker rand to the dollar.
The South African operations achieved a profit before tax of R173,2m compared to a R8.9m loss in the previous financial year to which the group’s 40% share in the newly acquired Namaqualand Mines contributed R123.3m – representing the equity accounted fair value of the assets acquired.
Production at Namaqualand only commenced in December when a final recovery plant at Keinzee was completed. The plant was commissioned in March.
A further R17m in pretax profit was added by Trans Hex’s Angolan operations taking total pretax profit to about R190m. The company also wrote down assets where it operates in the Lower Orange River for some R86.2m, but recouped R35m following the sale of its 100% stake in Pioneer Minerals.
In November Trans Hex paid R50c/share following the conclusion of a long-standing deal to buy Namaqualand Mines from De Beers. It holds its share in the investment through West Coast Resources.
Commenting on market prospects, the company said demand for its diamonds would increase towards the end of the year in line with market trends. There had been a weakening in global prices owing to tight liquidity and thin trading margins – a trend widely reported by other diamond miners.
“With diamond fundamentals remaining strong, the market is set to recover in the year ahead,” the company said in its results announcement.
