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Johannesburg - Diamond producer Trans Hex [JSE:TSX] reported a profit for the year ended March 31 2010 as diamond prices staged a recovery.
In a statement on Monday, the group reported a profit after tax of R22m compared to a loss of R798m in the previous reporting period.
Earnings per share from continuing operations increased to 23.8c from a loss per share of 719.4c.
"These achievements are largely attributed to two factors; stringent cost management that resulted in substantial reductions in cash operating costs against the previous comparative period; and the recovery of diamond prices," the group said.
"After a difficult previous financial year when demand and prices for rough diamond production fell significantly due to the global financial crisis, the current year saw continual growth in both of these key areas," the group added.
Prices had improved significantly and demand for Trans Hex production had remained strong.
In its outlook, Trans Hex said SA land operations production was anticipated around 100 000 carats for the 2011 financial year.
"The declining grade at Baken (on the Orange River) will be countered by increasing the plant throughput," it added.
It said tight cost and cash control would continue to be exerted.
"We remain positive for demand and pricing levels as sales since year-end have continued to show a strengthening in prices.
"Longer-term, reduced rough production levels globally and a gradual recovery in major economies from the recession will likely see demand for rough production increase."
The group's Luana mining contract for Angola was signed on May 12 2010.
"Pilot production will continue with equipment already on site, and the partners will in due course decide how the mine will be developed.
"Sale of Luana product will commence imminently," Trans Hex said.
- Sapa
