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Trans Hex Cautious About Future Operations
Jul 2, 2019 4:54 AM
By Rapaport News
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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)
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Tags:
Baken, Bloeddrif, LOR, Lower Orange River, mining, Rapaport News, Rough Diamonds, Trans Hex
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