RAPAPORT… Trans Hex Group’s losses widened 2% to $13.9 million (ZAR
186.8 million) in the past fiscal year, reflecting the termination of its Lower
Orange River (LOR) mining operations.
The company halted production at the unprofitable LOR
division in South Africa in October, and agreed in April to sell the assets to
a firm called Lower Orange River Diamonds. Revenue from LOR fell 54% to $15.3
million (ZAR 205.9 million) due to the mines — Baken and Bloeddrif — being on care and maintenance for a large part of
the financial year ending March 31. Losses at the discontinued operations grew
81% to $15.9 million (ZAR 213 million) from $8.7 million (ZAR 117.4 million)
last year.
Sales at Trans Hex’s continuing operations — West Coast
Resources in South Africa and Somiluana in Angola — more than doubled to $14.3
million (ZAR 192.5 million). The miner recorded a $2 million (ZAR 26.2 million) profit at those assets, compared with a loss of $4.9 million (ZAR 65.2 million) a year ago.
Image: Google
Losses Grow at South Africa’s Trans Hex
The Bottom Line
- Trans Hex's losses widened 2% to $13.9 million in the fiscal year ending March 31, driven by the shutdown of its Lower Orange River mining operations.
- Revenue from the Lower Orange River mines dropped 54% to $15.3 million as the Baken and Bloeddrif mines were on care and maintenance for much of the year.
- Sales at Trans Hex’s ongoing operations in South Africa and Angola more than doubled to $14.3 million, generating a $2 million profit compared to a prior loss.
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