JSE-listed diamond miner Trans Hex reported a group net profit of R52-million for the six months ended September 30, compared with the R199-million loss reported for the six months to September 30, 2017.
The company managed to raise its earnings a share to 37.6c apiece, compared with a loss of 89.7c apiece in the prior comparable period.
Sales revenue from the South African operations increased to R136-million, compared with R40.1-million in the prior comparable period.
However, the group reported a net loss from continuing operations of R26.8-million for the six months under review, compared with the loss of R2.3-million reported for the prior comparable period.
Profit from the discounted Lower Orange River (LOR) operations, however, amounted to R77.8-million, which incurred a loss of R197-million in the prior comparable period.
The LOR operations were sold in April.
The company also reported gains from the consolidation of West Coast Resources, which amounted to a net gain of R29.7-million. Trans Hex acquired an additional 27.2% equity interest in West Coast Resources in February, thereby increasing their shareholding to 67.2% and this acquisition has proved fruitful for this period’s results.
The company noted that headline earnings a share amounted to 41.5c, compared with a loss a share of 195c in the prior comparable period; however, the adjusted headline loss a share for the period amounted to 41.1c, compared with a loss of 87.9c.
The re-measurement of the West Coast Resources rehabilitation provision, amounting to R94.1-million, was reversed to arrive at the adjusted headline earnings per share. In the prior period’s figure, retrenchment costs of R111-million at the LOR operations were added back.
Trans Hex’s net asset value a share amounted to 217c, compared with 142c in the prior period.