[miningmx.com] — DIAMOND producer Trans Hex on Thursday reported a first half headline loss per share of 97.2 cents after posting earnings per share of 7.7 cents in the first half of last year.
A loss after tax of R103m was reported for the six months to end-September, against a profit of R9m in six months to end September 2009.
Total production from continuing operations amounted to 36,641 carats – a 28%
decline from the 50,678 carats produced in the same six months the year before.
Sales revenue was 35% lower at R243m from R371m previously.
The company said this primarily as a result of grade underperformance but also a
reflection of the stronger rand.
Net cash used during the reporting period was R68m, compared to R42m generated in the previous comparative period.
This resulted in a reduction of the group’s net cash position to R177m at end September 2010 from R247m at end September 2009.
South African production decreased from 45,502 carats to 32,288 carats during the
six-month period as a result of lower grades.
A 24% increase in total gravels treated was achieved, together with a 9% reduction
in the unit cost of production.
Total sales attributable to the South African operations amounted to $33m at an average price of $901 per carat.
In Angola at the company’s Luana Project, production commenced build-up in June
2010 and by the end of September a total of 6,164 carats had been produced.
Total sales attributable to the project during the period amounted to $11.3m at an average price of over $300 per carat.
The six-month period also saw the termination of all the company’s operations in
Namibia after the last remaining vessel sold.
“Towards the end of the reporting period, the grade at South African land operations started to recover. However, at the same time the rand strengthened
significantly and it was decided to suspend stripping operations at Baken until the
rand weakens,” Trans Hex said.
The mine is now concentrating on lowering total costs and generating an acceptable margin by processing existing low grade stockpiles at increased throughput levels.
South African production for the 2011 financial year is now expected to be 74,000
carats while the forecast for Luana in Angola for the coming six months is to produce 31,000 carats.
