| Tue 19 May 2009, 15:34 | | TSX - Trans Hex Group Limited - Trading statement |
|
TSX
TSX
TSX - Trans Hex Group Limited - 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 year ended 31 March 2009
("the period"), which should be released on SENS on 26 May 2009.
The loss for the period is expected to be R798 million after accounting for pre-
tax impairments of R569 million, compared to a loss of R18 million for the
previous corresponding reporting period. These impairments include an impairment
of the Group`s Angolan investments of R460 million.
The Group is expecting to report a loss per share for continuing operations of
690,3 cents (2008: loss of 1,4 cents) and headline loss per share of 585,1 cents
(2008: headline earnings of 8,6 cents). Adjusted headline loss per share after
accounting for the full impact of the impairments is expected to be 248,4 cents
(2008: adjusted headline earnings of 8,6 cents).
The financial information on which this trading statement is based has not been
reviewed and reported on by the Company`s auditors.
COMMENTS
The following salient points will be fully reported upon, when the Group
releases its results:
* Diamond prices dropped significantly from November 2008 to February 2009
and the demand for rough diamonds fell to record lows due to the adverse
effect on the diamond market of the global economic crisis. Demand and
prices for Trans Hex production has since strengthened.
* In response to the global economic crisis, overhead costs have been
significantly cut and non cash generative assets have been placed under
care and maintenance, notably the following:
- PK Plant in South Africa (mothballed)
- Shallow water operations (which are in the process of being placed
under care and maintenance)
- Fucauma operation in Angola
- Luarica operation in Angola (which has limited production funded out
of diamond sales as and when these sales occur)
* The Group had a net cash position at year end of R205 million (2008: R194
million)
Cape Town
19 May 2009
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Namibian Sponsor
IJG CORPORATE FINANCE (PTY) LTD
Date: 19/05/2009 15:34:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
