Trans Hex Cautious About Future Operations

RAPAPORT... Trans Hexhas issued a warning about its capacity to continue as a going concern, stating there was"material uncertainty" around its ability to fund its short-term liquidityrequirements. The notificationcomes amid continued operating losses for the business. Trans Hexrecorded a loss of ZAR 9.3 million($654,592) for its South African operations during the 2019 fiscal year ending March 31, the minerreported last week. In fiscal 2018, the company saw a deficit of ZAR 70.8million ($5 million). However, the2019 performance was boosted by the disposal of Trans Hex's Lower Orange River(LOR) operation - which included theBaken and Bloeddrif mines - in April last year. Includingproceeds from the sale, the project earned a profit of ZAR 77.8 million ($5.5million) in 2019. Meanwhile,group revenue fell 24%to ZAR 312.6 million ($22.6 million)for the year, even as the volume of sales rose 60% to 151,424 carats. Thecompany cautioned that the rough-diamond market continued to be weak and wasexpected to "remain softer" through the third quarter of the calendar year. Image: Rough diamonds. (Ptukhina Natasha)