Lower diamond prices push Trans Hex into the red
South African production declined, mainly due to the closure of Bloeddrif mine and underperformance at Baken mine
Diamond miner Trans Hex on Thursday reported an interim loss, as a result of several factors, including lower diamond prices.
Net loss was R199.2m in the six months to end-September, swinging from a profit of R32.5m in the year-earlier period, the company said in a statement
Sales revenue from the South African operations dropped 45.6% to R149.7m, as the average diamond price dropped 20.1%, mainly due to a weaker market and a decrease in average stone size.
A stronger rand and a 22.9% decrease in carats sold also affected sales revenue.
South African production decreased 16.2% to 15,917 carats, mainly due to the closure of Bloeddrif mine and underperformance at Baken mine.
Equity accounting loss from West Coast Resources, in which Trans Hex holds a 40% interest, widened to R13.1m‚ from R9m.
Equity accounting profit from its Somiluana mine fell to R18.7m from R34.2m.
Trans Hex expects production in the 2018 financial year to be in the order of 140,000 carats, compared with 2017’s actual production of 80,506 carats.
The share price was flat at R2 in early trade on the JSE, having lost 33% in the past two days, following a trading update.