Cape Town - Trans Hex, the diamond miner controlled by Rembrandt, eased the pain of the failed Ocean Diamond Mining (ODM) merger by announcing yesterday a 40 percent increase in bottom line profit to R40 million in the half-year to September.
Earnings, diluted by additional shares in issue, were 28 percent higher at 67c, prompting directors to raise the dividend to 12c.
Trans Hex, which is aiming to build production to 1 million carats a year within five years, reported that diamond production was 4 percent lower, but markedly better sales prices meant diamond sales were up 12 percent to R169 million.
The company explained that the judicious restrictive selling policies of the Central Selling Organisation, combined with strong US demand, pushed diamond prices 9 percent higher for Orange River production and 14 percent for marine diamonds. Trans Hex sells its diamond production through its own tender system in Antwerp.
Niel Hoogenhout, the managing director, said that in addition to the encouraging financial results Trans Hex had made progress with a number of strategic issues.
Hoogenhout said the ODM saga was now behind the company but directors still expected the Securities Regulation Panel to uphold its ruling regarding the payment to the ODM minorities of a higher offer price.
Hoogenhout said Trans Hex had refocused its energies onto a number of other initiatives, including Baken, one of the world`s premier alluvial diamond deposits.
He said that following the excavation of mega trench PK28/1 a further 31 800 carats had been added to the proven ore reserves.
Hoogenhout said the third exploration mega trench at the Bloeddrif prospect, upstream from Baken, had produced "brilliant" results which were largely responsible for a R14 million net surplus.
Trans Hex closed 50c higher at R7 on the JSE yesterday with only 1 000 shares changing hands.