|
|
Trans Hex Anticipates Decline in Profit, Revenue for 2014
May 27, 2014 4:32 AM
By Deena Taylor
|
|
|
RAPAPORT... Trans Hex anticipates that profit would drop 73 percent to $2.2 million (ZAR 22.7 million) for fiscal 2014, which ended on March 31, according to an updated guidance document. Trans Hex will finalized its fiscal results on June 2. The company anticipates a loss after tax from continuing operations of $490,410 (ZAR 5.1 million), compared with a profit of $6.3 million (ZAR 65 million) one year ago, as lower production and lower average prices impacted revenue.
The company reported that revenue for fiscal 2014 declined 7.4 percent to $66.9 million (ZAR 695.7 million) as the amount of carats sold fell 16 percent. The average price per carat decreased 7 percent due to less special stones recovered during the first half. However, the decline in revenue was somewhat offset by a 14 percent weakening of the rand against the dollar.
The company's South African production decreased 22 percent to 52,081 carats during the year. This was the result of a 15 percent decrease in volume treated due to the termination of joint-venture contracts coupled with a 21-day strike over wages by members of the National Union of Mineworkers. Production was also impacted by a 12 percent drop in ore grade due during the first six months of the year.
South African operations generated a loss before tax of $855,814 (ZAR 8.9 million) compared with a profit of $8.5 million (ZAR 88.2 million ) in the same period one year ago.
Meanwhile, production at the Somiluana mine in Angola rose 74 percent to 72,041 carats, while sales more than doubled to $32.4 million. Profit from the mine reached $10.5 million compared to a loss of $3 million one year ago.
|
|
|
|
|
|
|
|
|
|
Tags:
Deena Taylor, diamonds, Trans Hex
|
|
|
|
|
|
|
|
|
|
|
|
|