Trans Hex Group’s Loss for FY 2017 Widens to R182.6 Mn

1325
Trans-Hex-logo

For the year ended March 31, 2017, the Trans Hex Group reported a loss of R182.6 million as compared to a loss of R100.8 million incurred in the previous fiscal.

The loss per share amounted to 173.5 cents for the year ended March 31, 2017 as compared to loss per share of 94.4 cents for year ended March 31, 2016; and headline loss per share amounted to 114.6 cents for FY 2017 as compared to a loss of 56.9 cents for FY 2016.

This followed the decrease of sales revenue of its wholly owned South African operations by 19.5% to R540.2 million from R671.4 million in the previous year.

The Company also reported gross loss from South African land operations, which, for the period under discussion, amounted to R91.5 million as compared to a loss of R6.8 million incurred for the year ended March 31, 2016.

Impairment charges in respect of the Lower Orange River operations were lower for FY 2017 at R27.4 million as compared to R55.1 million in the previous year.

The Group declared a net cash position at the end of the year of R225.4 million as compared to R353.5 million at the end of March 2016.

For the year ended March 31, 2017, the price per carat of the Group’s South African operations fell to US$ 959 from US$ 981 per carat realised in the previous fiscal – in the year ended March 31, 2015, price per carat had reached a peak of US 1,353. The reason cited for the fall by the Group is the decrease in stone size to an average of 0.70 carats per stone.

The Group expects production from its South African operations for FY 2018 to be to the tune of 37,000 carats. It also expects prices in the immediate future to remain firm.

During the period, its 40% owned West Coast Resources operation produced 79,041 carats at an average grade of 32.73 carats/100 m3 compared to 16,517 carats at an average grade of 30.48 carats/100 m3 in 2016; additionally, the treatment of final recovery tailings produced 1,465 carats (2016: 8,413 carats).

Sales from these operations amounted to R172.1 million at an average price of US$ 166 per carat as compared to sales worth R49.4 million at an average price of US$ 208 in the prior fiscal.

“Production for the 2018 financial year is expected to be in the order of 150,000 carats, compared to 2017 actual production of 80,506 carats,” Trans Hex stated

The Group’s Angolan Operations at Somiluana produced 137, 219 carats for FY 2017 as compared to 99,572 carats produced in the previous year. Diamond prices for the period also improved to US$ 500 per carat as against an aveage price of US$ 351 per carat realised in the previous fiscal. The Company has indicated that production for the 2018 financial year here is expected to be in the order of 120 000 carats.

News Source: gjepc.org

Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.