Trans Hex posts R187m loss for FY18

JSE-listed diamond miner Trans Hex on Thursday reported a R186.8-million loss for the financial year ended March 31, 2018, with its loss a share amounting to 175.6c and its headline loss a share to 216.5c.

The group’s net loss from discontinued operations, including retrenchment costs of R99.3-million, totalled R213-million, which was slightly augmented by revenue from its continuing operations, contributing to a gross profit of R20.3-million, compared with a gross loss of R9.2-million in the 2017 financial year.

During the financial year under review, the miner increased its stake in West Coast Resources to 67.2% and gained control of the entity.

Its Lower Orange River operations also became discontinued operations, impacting on the comparability of the company’s results for the 2018 financial year with that of the 2017 financial year.

Looking ahead, Trans Hex will continue with prospecting at its West Coast Resources operations to target high-priority areas that may identify additional resources for mining.

Mining activities will remain focused on the Langklip area and on other sections of the Koingnaas area.

Production for the 2019 financial year is expected to be in the order of 240 000 ct, compared with the 173 920 ct produced in the 2018 financial year.

Further, during the 2019 financial year, the company’s Angolan mining operations will continue on the east bank of the Luana river at Nzagi, in the southwest at Lulau, and at other areas currently being evaluated.

Production results and geological work through drilling and bulk sampling indicate that the company’s production in Angola for the 2019 financial year is expected to be in the order of 145 000 ct.