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")
TRADING STATEMENT
The Company is currently finalising its results for the year ended 31 March
2006, which should be released on SENS on 31 May 2006.
Mining income decreased by 34% to R156 million (2005: R237 million) mainly as a
result of softer diamond prices in the latter half of the year and the scaling
down of the Middle Orange River and Tirisano Mine marginal operations.
Cost of sales increased by 20% to R931 million mainly as a result of the
reduction in diamond inventories (R106 million movement year on year). Other
cost of sales increased by 6,7% from the previous year. The main contributors
to these increases are the higher fuel prices and the higher labour costs
relating to the implementation of the maximum shift system. At the Angolan
operations, production ramp-ups are in progress with the upgraded plants at
these operations being commissioned during the financial year.
As announced in the interim results released on SENS on 14 November 2005, and in
accordance with IAS 36, the group has recorded impairments totaling R150
million. These relate to investments in the Matikara alluvial exploration
projects in Angola and the Tirisano Diamond Mine. The Board has taken a decision
to dispose of the Middle Orange River assets and subsequently the value of these
assets has been partially impaired.
The loss for the year, after impairments, amounts to R121 million compared to a
profit of R96 million for the prior year. As a result of the above, shareholders
are advised that loss per share is expected to be 114,5 cents (224% lower than
the prior year) and headline earnings per share are expected to be 28,2 cents
(67% lower than the prior year).
The financial information on which this trading statement is based has not been
reviewed and reported on by the Company"s auditors.
Cape Town
23 May 2006
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 23/05/2006 05:06:04 PM Produced by the JSE SENS Department
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