Trans Hex in 24/7 operations to boost production levels

DIAMOND miner Trans Hex Group has concluded a deal with a local empowerment company, Epia Minerals, to jointly pursue various opportunities in Namibia and help boost Trans Hex mining operations.

The group will also from next week, be implementing continuous operations known as CONTOPS – which is a 24/7 operations system – at the Baken and Bloeddrif land operations in South Africa. The group hopes to reach planned production level for the last four months of the financial year with CONTOPS, after production from land operations in South Africa was 19 per cent lower at 60 400 carats.However, marine diamond production amounted to 41 600 carats up from 13 800 carats with shallow water contractor operations contributing 45 per cent of the total production.This was announced in the company’s results for the six months ended September released this week, in which period diamond sales were two per cent lower in rand/N$ terms at N$532,8 million compared to N$542,2 million of the first six months of the 2003/04 financial year.Diamond sales, however, were 18 per cent higher in US dollar terms at US$82,5 million from US$69,8 million previously.The strengthening of the rand/N$ by 14,2 per cent continued to knock headline earnings for the six months.The group’s rough diamonds are mostly sold in US dollars but its costs are rand-denominated.Headline earnings per share dropped 35 per cent to 86,3 cents from 132,5 cents of the previous year after attributable income decreased 28,6 per cent to N$80,6 million.Trans Hex said if the rand/N$ had remained at last year’s average level, headline earnings for the period under review would have been 163 cents per share.Mining income went down by 46 per cent to N$138,3 million from N$256,1 million with costs of sales increasing by 25,3 per cent to N$394,5 million compared to N$314,8 million.Trans Hex’ activities in Angola resulted in an increase of 57 per cent in costs, with costs of sales increasing by 22 per cent.However, cash retained from operating activities increased by 35,4 per cent to N$31,3 million up from N$31,3 million with total diamond production amounting to 120 700 carats compared to 107 400 carats previously.The group said it remained optimistic that current dollar diamond prices would be maintained, although a sustained rand-dollar exchange rate at present levels would negatively impact on earnings for the full financial year.”We are optimistic that with continuous operations we’ll be able to maintain our South African margins and optimally exploit our Baken reserves.The continuing consolidation of our Angolan operations provides a good base for further expansion,” said Trans Hex managing director Llewellyn Delport said.Another freeze on YUKOS’ Sibneft stake MOSCOW – Russia’s General Prosecutor’s Office has put another freeze on oil major YUKOS’ 34,5 per cent stake in Sibneft in a tax evasion investigation, a YUKOS official told Reuters yesterday.The Vedomosti business newspaper quoted prosecutors as saying the stake, worth over US$6 billion based on Sibneft’s market capitalisation, may be confiscated if it is proven that YUKOS acquired it with funds raised through tax evasion.YUKOS has yet fully to unwind its merger with Sibneft struck just before the arrest last year of its then-CEO Mikhail Khodorkovsky, now on trial for tax evasion and fraud in what is widely seen as Kremlin punishment for his political activities.Former Sibneft shareholders, led by the owner of English soccer club Chelsea Roman Abramovich, already regained 57 per cent in Sibneft from YUKOS in October.But the fate of the remaining 34,5 per cent acquired by YUKOS for US$3 billion in cash and treasury stock, remains unclear.YUKOS, Russia’s largest oil exporting company, said on Tuesday that it has been hit with cumulative back-tax bills of US$18,5 billion.Its shareholders will consider a possible bankruptcy filing at a December 20 meeting.-Nampa-ReutersThe group hopes to reach planned production level for the last four months of the financial year with CONTOPS, after production from land operations in South Africa was 19 per cent lower at 60 400 carats. However, marine diamond production amounted to 41 600 carats up from 13 800 carats with shallow water contractor operations contributing 45 per cent of the total production.This was announced in the company’s results for the six months ended September released this week, in which period diamond sales were two per cent lower in rand/N$ terms at N$532,8 million compared to N$542,2 million of the first six months of the 2003/04 financial year.Diamond sales, however, were 18 per cent higher in US dollar terms at US$82,5 million from US$69,8 million previously.The strengthening of the rand/N$ by 14,2 per cent continued to knock headline earnings for the six months.The group’s rough diamonds are mostly sold in US dollars but its costs are rand-denominated.Headline earnings per share dropped 35 per cent to 86,3 cents from 132,5 cents of the previous year after attributable income decreased 28,6 per cent to N$80,6 million.Trans Hex said if the rand/N$ had remained at last year’s average level, headline earnings for the period under review would have been 163 cents per share.Mining income went down by 46 per cent to N$138,3 million from N$256,1 million with costs of sales increasing by 25,3 per cent to N$394,5 million compared to N$314,8 million.Trans Hex’ activities in Angola resulted in an increase of 57 per cent in costs, with costs of sales increasing by 22 per cent.However, cash retained from operating activities increased by 35,4 per cent to N$31,3 million up from N$31,3 million with total diamond production amounting to 120 700 carats compared to 107 400 carats previously.The group said it remained optimistic that current dollar diamond prices would be maintained, although a sustained rand-dollar exchange rate at present levels would negatively impact on earnings for the full financial year.”We are optimistic that with continuous operations we’ll be able to maintain our South African margins and optimally exploit our Baken reserves.The continuing consolidation of our Angolan operations provides a good base for further expansion,” said Trans Hex managing director Llewellyn Delport said. Another freeze on YUKOS’ Sibneft stake MOSCOW – Russia’s General Prosecutor’s Office has put another freeze on oil major YUKOS’ 34,5 per cent stake in Sibneft in a tax evasion investigation, a YUKOS official told Reuters yesterday.The Vedomosti business newspaper quoted prosecutors as saying the stake, worth over US$6 billion based on Sibneft’s market capitalisation, may be confiscated if it is proven that YUKOS acquired it with funds raised through tax evasion.YUKOS has yet fully to unwind its merger with Sibneft struck just before the arrest last year of its then-CEO Mikhail Khodorkovsky, now on trial for tax evasion and fraud in what is widely seen as Kremlin punishment for his political activities.Former Sibneft shareholders, led by the owner of English soccer club Chelsea Roman Abramovich, already regained 57 per cent in Sibneft from YUKOS in October.But the fate of the remaining 34,5 per cent acquired by YUKOS for US$3 billion in cash and treasury stock, remains unclear.YUKOS, Russia’s largest oil exporting company, said on Tuesday that it has been hit with cumulative back-tax bills of US$18,5 billion.Its shareholders will consider a possible bankruptcy filing at a December 20 meeting.-Nampa-Reuters