JSE-listed diamond miner Trans Hex announced a return to profitability on Tuesday.
It posted a first-half profit from continuing operations of R10,2-million, compared with a loss of R56-million a year earlier, according to interim results for the period ended September 30.
”Our focus on stringent cost management yielded reductions in operating costs, whilst cash generated from operations resulted in a net cash inflow of R42-million, against a net outflow of R97-million in the previous period,” CEO Llewellyn Delport said.
Increased volumes, and a weaker rand/US dollar exchange rate, resulted in a 12,5% increase in sales revenue to R371-million. This was despite diamond prices being lower than in the same period last year.
Similarly, mining income increased to R32-million from a R22-million loss in the previous corresponding period.
”Diamond prices and demand came under significant downward pressure in the latter half of the previous financial year. The current period saw prices stabilise and increase with all production being sold.”
Cost reductions saw cash operating costs decrease by R85-million, while profit after taxation increased to R9-million from a loss of R64-million.
Earnings per share from continuing operations increased to 9,7 cents from a loss per share of 53 cents. Net asset value per share increased 25% from March 31. — Sapa