| Mon 3 Nov 2003, 15:23 | | New find could put Trans Hex in big league |
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Income increases 24,4 % to R112m
Resources Correspondent
TRANS Hex may be on the verge of a diamond find large enough to propel the small-scale diamond producer into the big league.
The company, which reported a rise in net income for the quarter on Friday, said further exploration at its Gango concession in the Cuanza Sul province in Angola had shown significant potential. "Promising" targets had been identified, it said.
"Gango is our best prospect in terms of joining the big league when it comes to diamond products," said Trans Hex CEO Calvyn Gardner on Friday.
There are four known kimberlites rock containing diamonds in the Gango area. Following recent exploration, Trans Hex plans to focus work on the source of the stream on the concession.
Miners are already taking diamonds from the stream, and the thinking, backed by exploration work, is that the source of these diamonds is the source of the stream. This is situated on a small hill up from the main area in the concession.
Trans Hex is a 33% shareholder in the Gango concession with other Angolan partners, including the Angolan government's diamond company, Endiama.
Trans Hex's share price surged 5,04% on Friday to close at R25, the highest price in the year to date, after positive earnings for the six months to the end of September and future prospects.
Attributable income in the period rose 24,4% to R112,9m, compared with R90,8 in the comparable six months last year.
Trans Hex said that its earnings were bolstered by an average diamond price increase of 13% on a year-on-year basis.
In the six months diamond sales were 22% higher at R542,2m compared with those of the comparable period a year earlier.
The company said increased production and higher than budgeted diamond grades from its Lower Orange River projects in Northern Cape, Baken, Bloeddrif and Reuning, had helped offset the effects of the strong rand.
The company said it planned to introduce a seven-day working week at its Lower Orange River operations early next year.
Production at the Baken mine, which is the biggest contributor to Trans Hex's operations by revenue, grew 14% in the six months.
At the Saxendrift mine, production was up 9%.
At Trans Hex's Luarica project in Angola, the average value of production was $300 a carat. In the period the reserve base at that operation was increased 26%.
Mvelaphanda Resources has a 25% stake in Trans Hex
