Trans Hex probes growth opportunities in Africa

TRANS HEX Group, the diamond mining company listed on the Johannesburg Stock Exchange Securities Exchange, has stated that in the forthcoming year it will continue to investigate potential growth opportunities in South Africa, Angola and elsewhere in Africa.

According to the Trans Hex Group 2004 annual report, the company’s expansion into Angola is showing results with Luarica producing 95 000 carats in its first full year of production. “Sales of the Luarica production fetched average prices in excess of US$300 (N$1 800) per carat, being the highest-value production in Angola to date,” read a letter to stakeholders from company chairman Tokyo Sexwale and deputy chairman Bernard van Rooyen.The company expects in the year ahead to further develop the Luarica concession, carry out full-scale mining at Fucauma and considerable exploration activities at the Gango kimberlite and Luana alluvial concessions.In addition, Jeffrey Ovian joined Trans Hex Angola as managing director, and will be based in Luanda, where he will oversee the company’s operations in that country.The report said the firming of the US dollar diamond prices was encouraging, with the company experiencing an average US dollar price per carat increase on excess of 18 per cent.But the company could not avoid the reality in which the resource sector was faced with due to the ever-strengthening rand/Namibian dollar.Sexwale and Van Rooyen said headline earnings per share decreased by 18 per cent to 222 cents, “but if measured in constant currency and diamond prices, headline earnings would have reflected a 29 per cent increase over last year”.Because of a stronger rand/Namibian dollar the group’s attributable income declined by 15 per cent to N$191 million compared to N$225 million of 2003 resulting in a decrease in headline earnings per share to 222 cents from 270,2 cents previously.Sales revenue for the year increased by 11 per cent to N$1 billion up from N$972 of 2003, while net assets value per share went up nine per cent to 1 219 cents compared to 1 124 cents in 2003.The group’s marine operations also once again experienced a difficult year, but still managed to contribute 37 000 carats to total production, being two per cent more than last year.”Various options are being explored to improve revenue in the group’s marine operations in both South Africa and Namibia,” read the letter.The year also saw the sale of Trans Hex’ highest value stone to date, a 78,9 carat D colour stone from Baken which achieved in excess of US$1,8 million (N$10, 8 million).A number of significant fancy colour stones were also sold with an 8,61 carat orange stone achieving almost US$43 000 (N$N$258 000) per carat and a 27, 67 carat pink stone realising in excess of US$1 million (N$6 million) per carat.”Sales of the Luarica production fetched average prices in excess of US$300 (N$1 800) per carat, being the highest-value production in Angola to date,” read a letter to stakeholders from company chairman Tokyo Sexwale and deputy chairman Bernard van Rooyen.The company expects in the year ahead to further develop the Luarica concession, carry out full-scale mining at Fucauma and considerable exploration activities at the Gango kimberlite and Luana alluvial concessions.In addition, Jeffrey Ovian joined Trans Hex Angola as managing director, and will be based in Luanda, where he will oversee the company’s operations in that country.The report said the firming of the US dollar diamond prices was encouraging, with the company experiencing an average US dollar price per carat increase on excess of 18 per cent.But the company could not avoid the reality in which the resource sector was faced with due to the ever-strengthening rand/Namibian dollar.Sexwale and Van Rooyen said headline earnings per share decreased by 18 per cent to 222 cents, “but if measured in constant currency and diamond prices, headline earnings would have reflected a 29 per cent increase over last year”.Because of a stronger rand/Namibian dollar the group’s attributable income declined by 15 per cent to N$191 million compared to N$225 million of 2003 resulting in a decrease in headline earnings per share to 222 cents from 270,2 cents previously.Sales revenue for the year increased by 11 per cent to N$1 billion up from N$972 of 2003, while net assets value per share went up nine per cent to 1 219 cents compared to 1 124 cents in 2003.The group’s marine operations also once again experienced a difficult year, but still managed to contribute 37 000 carats to total production, being two per cent more than last year.”Various options are being explored to improve revenue in the group’s marine operations in both South Africa and Namibia,” read the letter.The year also saw the sale of Trans Hex’ highest value stone to date, a 78,9 carat D colour stone from Baken which achieved in excess of US$1,8 million (N$10, 8 million).A number of significant fancy colour stones were also sold with an 8,61 carat orange stone achieving almost US$43 000 (N$N$258 000) per carat and a 27, 67 carat pink stone realising in excess of US$1 million (N$6 million) per carat.