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Trans Hex Press Release

Release Date: 27/05/2002 17:17
Code(s): TSX
Wrap Text

Trans Hex Press Release Record year for Trans Hex Total production of 221 000 carats, a resurgence in diamond prices during the last quarter, stringent cost controls and a decline in the Rand have enabled Trans Hex to achieve record turnover and profitability levels during the past financial year. A final dividend of 37 cents brings the total for financial 2002 to 52,5 cents. This represents an increase of 25% over last year and completes the 20th year of uninterrupted dividend growth since listing in 1981. "Our record sales of R831 million also represents a 20% growth in dollar terms over last year to US$ 81,9 million and a 38% increase in attributable earnings to R176 million," said Calvyn Gardner, Trans Hex chief executive officer. "Particularly encouraging was the 7% drop in cost-per-carat produced, especially considering that two of our main input expenses - labour and diesel - had increased significantly," added Gardner. "This is a clear indication of the benefit that our new, larger and more efficient Baken Central Plant is bringing to the overall operation." Total diamond production was up almost 70% over last year. The Company`s land operations at Baken and Hondeklip Bay exceeded expectation and the move into deep-water mining with two airlift-type vessels boosted the marine contribution. According to Gardner prospects for the current financial year also show great promise following a thorough restructuring of operations since September last year. He added that efficient existing operations would be the springboard for future growth with production expected to exceed the 200 000 carat mark again. "Our close relationship with Mvelaphanda Holdings - they now effectively control a 19,4% stake in Trans Hex - is a key enabling factor in our growth plans on a number of important fronts," explained Gardner. "We now meet the empowerment provisions contained within the Minerals and Petroleum Resources Development Bill. But also of great importance is Mvela`s ability to open doors for us in our search for new projects locally and further afield. In fact, a number of these new opportunities are in an advanced stage of negotiation," said Gardner. Trans Hex explores for, mines and markets diamonds from its own concessions along the Middle and Lower Orange River and in sea zones off the South African and Namibian coasts. It has established a global reputation as a niche producer of large, gem-quality conflict-free diamonds. Ends. For further information Calvyn Gardner Tel: (021) 937-2000 / 082 444-3370 Issued by Cullum Johnston BHA Communications Tel: (021) 683-2685 Date 27 May 2002 Date: 27/05/2002 05:16:02 PM Produced by the SENS Department

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