News

Advanced Search

Trans Hex Cautious About Future Operations

Jul 2, 2019 4:54 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT... Trans Hex has 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 liquidity requirements. The notification comes amid continued operating losses for the business.

Trans Hex recorded a loss of ZAR 9.3 million ($654,592) for its South African operations during the 2019 fiscal year ending March 31, the miner reported last week. In fiscal 2018, the company saw a deficit of ZAR 70.8 million ($5 million).

However, the 2019 performance was boosted by the disposal of Trans Hex’s Lower Orange River (LOR) operation — which included the Baken and Bloeddrif mines — in April last year. Including proceeds from the sale, the project earned a profit of ZAR 77.8 million ($5.5 million) 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.

The company cautioned that the rough-diamond market continued to be weak and was expected to “remain softer” through the third quarter of the calendar year.

Image: Rough diamonds. (Ptukhina Natasha)
Tags: Baken, Bloeddrif, LOR, Lower Orange River, mining, Rapaport News, Rough Diamonds, Trans Hex
Similar Articles
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2019 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.