[miningmx.com] — TRANS Hex on Tuesday advised it expected to post a swing in its interim earnings back to a profit on the back of improved production and increased sales.
The company said it expected to report earnings and headline earnings of 15.4 cents a share for the six months to end-September 2011, a turnaround from the 81.8 cent loss and headline loss posted for the six months to end-September 2010.
Net profit for the period is expected to be R1.7m, compared to a loss of R103m last year.
South African operations generated a profit before tax of R24.9m for the period, compared to a loss of R101.4m in the corresponding reporting period, while production amounted to 33,199 carats, against the 32,288 carats produced in the previous interim period.
Sales revenue increased by 12.1% in rand terms, from R242.7m in September 2010 to R272m. Net cash used during the period was R64.1m, lower than the R68.2m spent in the same six months of last year.
This resulted in the company’s net cash position at the end of the period being R203.4m from R177.3m at end September last year.
Meanwhile, production at Somiluana in Angola more than doubled to 20,473 carats from 6,164 carats and sales totalled $9.8m versus $11.3m, which included the sale of pilot production carats.
By 16:00 shares in Trans Hex had firmed 12.50% or 41c, to R3.69 a share on the JSE.
The stock has added 23%, or 69 cents, this month to date.
