Trans Hex reports that the average US Dollar diamond price decreased by 20.1%, mainly due to a weaker market and a decrease in average stone size.
Trans Hex sales were negatively affected by an 11.8% strengthening of the Rand against the US Dollar and a 22.9% decrease in carats sold.
The group's South African production decreased by 16.2% to 15 917 carats (September 2016: 18 997 carats) mainly due to the closure of Bloeddrif mine and underperformance at Baken mine.
The cost of goods sold by Trans Hex increased to R340.7 million (September 2016: R261.4 million) mainly due to retrenchment costs of R111.4 million, offset by lower maintenance costs, depreciation and stock movement of R14.7 million.
Gross loss for the South African operations amounted to R191 million (September 2016: profit of R13.9 million).
At West Coast Resources, in which Trans Hex holds a 40% stake, production amounted to 60 344 carats (September 2016: 37 153 carats).
Sales amounted to R118.5 million at an average price of $156/carat (September 2016: sales of R78.4 million at an average price of $176/carat).
The 40% equity accounted loss for the period amounted to R13.1 million (September 2016: loss of R9 million).
The South African operations showed a loss before tax of R211.4 million (September 2016: loss of R13.4 million).
In Angola, production at Somiluana mine, in which Trans Hex holds a 33% stake, decreased significantly to 67 083 carats (September 2016: 91 033 carats) due to a 15% decrease in average grade and a 13.3% decrease in gravel treated.
Total sales amounted to $27.7 million at an average price of $531/ carat (September 2016: sales of $32.5 million at an average price of $477/carat).
The group received $330 000 (September 2016: $330 000) in dividends.
Profit from the Angolan continuing operations amounted to R11.4 million (September 2016: profit of R21.6 million), consisting of Somiluana's equity accounted profit of R18.7 million, less Angolan head office costs of R7.3 million.
Trans Hex reports an after-tax loss for the period from continuing operations of R200 million (September 2016: profit of R8.9 million).
Profit from the discontinued Luarica and Fucauma operations amounted to R0.9 million (September 2016: R23.6 million).
Trans Hex therefore reports a loss for the period of R199.2 million (September 2016: profit of R32.5 million).
Cash and cash equivalents at the end of the reporting period amounted to R41.3 million (September 2016: R322.4 million).
No adjustments have been made to the statement of mineral resources and mineral reserves as contained in the 2017 Integrated Annual Report.
Reconciliation of production data takes place annually and an updated mineral resources and reserves statement will be published in the 2018 Integrated Annual Report.
Feature image credit: Wikimedia