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TRANS HEX GROUP LTD - PRICES REMAIN STRONG FOR HIGH QUALITY DIAMONDS

Release Date: 17/10/2000 14:19
Code(s): TSX
Wrap Text
NEWS RELEASE
PRICES REMAIN STRONG FOR HIGH QUALITY DIAMONDS

DIAMOND PRICES AT TRANS HEX'S SEPTEMBER TENDER, WHICH INCLUDED TWO 50-CARAT STONES, CONTINUED THE STRONG FORM SHOWN EARLIER IN THE YEAR YIELDING ALMOST R100-MILLION.
THE TENDER OFFERED 41 PARCELS AND, IN KEEPING WITH TRANS HEX'S ESTABLISHED REPUTATION FOR HIGH QUALITY ROUGH, INCLUDED 93 GEM-QUALITY DIAMONDS OVER TEN CARATS.
"OUR TENDER RESULTS CONTINUE TO PERFORM ABOVE EXPECTATIONS, WITH THE SALE AVERAGE EXCEEDING US$520PER CARAT. OBVIOUSLY TRANS HEX IS HAPPY WITH THESE RESULTS, BUT AN IMPORTANT BENEFACTOR IS ALSO THE NAMAQUALAND COMMUNITY," SAID MANAGING DIRECTOR: OPERATIONS PETER DANCHIN.
"WE CONTRIBUTE 4.5% OF GROSS SALES AS ROYALTIES TO THE NAMAQUALAND DIAMOND FUND TRUST (NDFT) - A BODY TASKED WITH THE UPLIFTMENT OF LARGE PORTIONS OF THE REGION. IN THIS WAY ANY DIAMOND MARKET IMPROVEMENT HAS A DIRECT BEARING ON OUR PAYMENT TO THE COMMUNITY," SAID DANCHIN.
TRANS HEX HAS CARVED A NICHE AMONG WORLD MINERS FOR THE PRODUCTION OF
HIGH-VALUE GEMS, A SECTOR OF THE MARKET RELATIVELY UNAFFECTED BY THE VAGARIES OF THE GLOBAL DIAMOND INDUSTRY.
TRANS HEX GROUP UNDERTAKES ITS OWN DIAMOND MARKETING ACTIVITIES UNDER THE SUPERVISION OF THE SOUTH AFRICAN DIAMOND BOARD. THE MOST RECENT TENDER HELD AT THE DIAMOND BOURSE IN JOHANNESBURG ATTRACTED BUYERS FROM ALL OVER THE WORLD - A COMMON OCCURRENCE FOR THE COMPANY.
TRANS HEX'S TENDER SYSTEM HAS BEEN EXTREMELY EFFECTIVE AND OFTEN HIGHLIGHTS THE DIFFERENCES PERCEIVED IN DIAMOND QUALITY BY VARIOUS BIDDERS. IN SOME CASES, INDIVIDUAL PARCEL PRICES HAVE VARIED BY MORE THAN 100% FROM ONE BUYER TO THE NEXT.
"WE EXPECT OUR DIAMOND PRICES TO REMAIN FIRM FOR THE REMAINDER OF THE YEAR AND, MORE THAN LIKELY, INTO NEXT," SAID DANCHIN. "THAT, COUPLED WITH A HAZY OUTLOOK FOR THE RAND, MEANS POSITIVE RESULTS FOR US." ENDS. FOR FURTHER INFORMATION: PETER DANCHIN TRANS HEX GROUP TEL: (021) 939-1105 ISSUED BY: CULLUM JOHNSTON BHA COMMUNICATIONS TEL: (021) 683-2685
E-MAIL: CULLUM@BHACOMMS.CO.ZA DATE: 17 OCTOBER 2000

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