Johannesburg - Diamond miner Trans Hex has reported a profit for the first half of the year, reversing its previous los-making position.
The listed company says in a statement on Wednesday that group net profit came in at R32.5 million for the six months to September, compared with a R32.5 million los in the previous corresponding period, and a R100.75 million loss at year end.
This, it says, was achieved despite sales revenue from its wholly-owned South African operations growing at just 2.5 percent to R275.3 million.
In August, it said a consortium of companies holding more than 72 percent of the shares have made a mandatory cash offer to acquire it. The consortium is reportedly led by SA billionaire Christo Wiese.
Its equity accounting loss from West Coast Resources amounted to R9 million, a slight increase on the R8.8 million reported a year ago.
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Trans Hex says in its commentary that South African production decreased by 20.6 percent to 18 997 carats. However, this is in line with a new operating model that was introduced at the Lower Orange River operations in February 2016 to extend the viable life-of-mine of these operations for as long as possible, it says.
“These changes have resulted in reduced overburden stripping and less gravel mined.””
It benefited from a lower cost of goods sold, which declined from R293.3 million to R261.4 million as labour, fuel and maintenance costs declined.
Trans Hex has operations in SA, a 40 percent stake in West Coast Resources and a 33 percent stake in an Angolan mine.
Cash and cash equivalents at the end of the reporting period amounted to R322.4 million, down from R347.5 million.
IOL
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