The Angel Diamonds
plant at Kolo in
Lesotho
 
Johannesburg, South Africa — MININGREVIEW.COM — 20 October 2008 – JSE-listed Thabex Limited has announced its audited group results for the year ended 29 February 2008, and re-assured investors that the group will be able to settle its liabilities in the normal course of business.
 
A statement released here said he group had incurred a net loss of R7.79 million for the year ended 29 February 2008, (2007: R6.61 million).

The results also showed the pro forma financial effects of the disposal of a 42% interest in its diamond exploration subsidiary, Angel Diamonds (Pty) Ltd. The pro forma showed net asset value per share rising after the disposal from 73.86 cents to 168.73 cents – a 128% improvement.

Incorporating the funds raised from the Angel disposal, the headline earnings improved from a loss of 45.69 cents per share to a profit of 43.63 cents per share – a pro forma improvement of 195.5%.

Thabex Limited CEO Marius Welthagen commented: “this is the third grassroots exploration project that the company has successfully turned to account, and for the greatest financial consideration.”

The statement added that although Thabex would be disposing of its interest in Angel Diamonds in stages to London-based Mantle Diamonds Ltd, the turning to account of the Kolo Kimberlite Project should provide sufficient cash resources to enable Thabex to continue to develop and turn to account its Monastery Kimberlite Project, and to finalise a pre-feasibility study for Salt River Resources Ltd.

“We are confident that the production of rough diamonds from the Kolo Kimberlite Project; the disposal of the company’s interest in Angel Diamonds; and the proposed disposal of the Middelwater alluvial diamond project will generate sufficient cash flow to enable the group to be able to settle its liabilities in the normal course of business,” Welthagen concluded.