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TRANS HEX GROUP LIMITED - Trading statement

Release Date: 26/05/2014 07:05
Code(s): TSX     PDF:  
Wrap Text
Trading statement

TRANS HEX GROUP LIMITED
Incorporated in the Republic of South Africa
Registration number (1963/007579/06)
Share code: TSX
ISIN: ZAE000018552
("Trans Hex" or the “Company” or the “Group”)

TRADING STATEMENT

Trans Hex is currently finalising its results for the 12 months ended 31 March 2014 (“the
Period”), which should be released on SENS on or about 2 June 2014.

The Group expects to report:
   - net profit for the Period of R22,7 million compared to net profit of R85,4 million for the
     12 months ended 31 March 2013 (“Corresponding Period”);
   - loss after tax from continuing operations of R5,1 million, against profit of R65,0 million
     in the Corresponding Period;
   - earnings per share of 20,7 cents (2013: 79,7 cents);
   - headline earnings per share of 9,8 cents (2013: 69,9 cents); and
   - net asset value per share of 521,0 cents (2013: 505,0 cents).

COMMENTS

The following salient points will be fully reported upon when the Group releases its results:
   - South African production amounted to 52,081 carats (2013: 67,115 carats) due to a
     14,9% decrease in volume treated as a result of the termination of joint-venture
     contractors and a 21-day strike over pay increases by members of the National Union
     of Mineworkers. A 12% drop in grade as a result of grade underperformance during the
     first six months of the year, also impacted on production.
   - Sales revenue decreased by 7,4% in Rand terms from R751,3 million in the
     Corresponding Period to R695,7 million as a result of a 15,7% decrease in carats sold
     and a 7,2% decrease in average prices. The average price decrease was due to fewer
     special stones being recovered during the first six months of the year. Revenue was
     however positively affected by a 14,4% weakening in the Rand.
   - South African operations generated a loss before tax of R8,9 million for the Period
     compared to profit of R88,2 million in the Corresponding Period.
   - The cost of goods sold increased to R653,7 million (2013: R605,2 million) mainly due to
     stock movement of R32,7 million and a 2,5% increase in operating costs.
   - Production at Somiluana in Angola amounted to 72,041 carats during the Period (2013:
     41,313 carats).
   - Somiluana sales totalled US$32,4 million (2013: US$14,9 million).
   - Somiluana’s operating margin was 32% (2013: -20%) and the mine generated net profit
     of US$10,5 million (2013: loss of US$3,0 million).
   - Net cash generated during the Period was R14,2 million (2013: R36,0 million), resulting
     in the Group’s net cash position at the end of the Period being R397,6 million (2013:
     R383,4 million).

The financial information on which this trading statement is based has not been reviewed and
reported on by the Company’s auditors.

Cape Town
26 May 2014

Sponsor
One Capital

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