Despite Strong Rand, Trans Hex Posts Record Results

South African diamond company Trans Hex reported on Friday record results for the six months period ending September 30. Diamond sales were up 62 percent in dollar terms to $69.8 million from $43.2 million – a 22 percent increase in rand terms.

These numbers are impressive in light of total diamond production of 107,300 carats, compared to 106,000 carats mined during the comparable period last year. The company partially attributed the results to cost control, focusing on lowering cost per carat.

Carat production from Land Operations, excluding production from Hondeklip Bay, which came to its end of mine life during January 2003, was 38 percent higher than for the prior year corresponding period.

Total diamond production from the marine operations amounted to 13,805 carats. The bulk of the carat production came from the Northern and Southern sector shallow water diving operations, as the two deep-water mining vessels were both committed to charter agreements with De Beers Marine in Namibia.

The continuance of the charter agreements is currently being negotiated. The Mv Ivan Prinsep is scheduled to conduct sampling operations in Trans Hex’s South African concession areas in the latter part of 2003.

According to the company a its production remains an important source of rough to the open market, translating into sustained high demand levels and a strengthening of dollar prices. During the period, five gem quality stones in excess of fifty carats and one stone in excess of one hundred carats were sold.

In addition to regular South African sales, Trans Hex conducted two sales with a combined weight in excess of 36,000 carats during the period from the Angolan Luarica concession to ASCORP and SODIAM, the Angolan companies that hold exclusive export rights from the country.