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Trans Hex Sales and Prices Decline

Jun 27, 2017 9:27 AM   By Rapaport News
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RAPAPORT... Revenue fell for South Africa-based Trans Hex in the past fiscal year as the company sold a smaller volume of diamonds and prices declined, the miner said in a statement last week.

Sales of rough diamonds slumped 19.5% to $41.8 million (ZAR 540.2 million) in the 12 months that ended March 31. Diamond sales by volume fell 17.5% to 40,187 carats, while the average price of rough sold dropped 2.2%, the company reported. Trans Hex had a net loss of $14.1 million (ZAR 182.6 million), which was 81% greater than in the previous year, in line with a warning the company issued earlier this month.

India’s demonetization policy in late 2016 — in which the government invalidated 86% of the nation’s currency — slashed liquidity among diamond companies, resulting in the drop in rough prices, the miner explained. However, demand had recovered by the end of the fiscal year as Indian polishing factories returned to high production levels and were looking to fill inventory gaps.

“Firm prices are expected to persist in the short term as market sentiment remains solid in the commercial and manufacturing sectors,” it added. “A slower market is traditionally expected between June and August, in line with the European holidays.”
Tags: Demonetization, India, Rapaport News, Rough Diamonds, rough sales, South Africa, Trans Hex, Trans Hex Group
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