Annual Results Presentation For the year ended 31 March 2017 - - PowerPoint PPT Presentation

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Annual Results Presentation For the year ended 31 March 2017 - - PowerPoint PPT Presentation

Sep 10, 2022 336 likes •578 views

Annual Results Presentation For the year ended 31 March 2017 CONTENTS Financial overview Wholly owned South African operations West Coast Resources operations Angolan operations Conclusion Trans Hex Group Annual Results

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Annual Results Presentation

For the year ended 31 March 2017

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Trans Hex Group Annual Results Presentation 2017

CONTENTS

  • Financial overview
  • Wholly owned South African operations
  • West Coast Resources operations
  • Angolan operations
  • Conclusion
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Financial Overview

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Trans Hex Group Annual Results Presentation 2017

FINANCIAL OVERVIEW

March 2017 March 2016 Rand revenue (Rm) 540,2 671,4 Cost of goods sold (Rm) (631,7) (678,2) Share of results of associates* (19,0) (29,4) Impairments# (Rm) (27,4) (55,1) Loss from continuing operations (Rm) (211,5) (124,8) Profit from discontinued operations (Rm) 28,9 24,0 Loss for the year (Rm) (182,6) (100,8) Headline loss per share (cents) (114,6) (56,9) Cash position (Rm) 225,4 353,5 Net asset value per share (cents) 337 506 * Including the Group’s share of an impairment charge to mining rights, after tax, of R43,4 million.

# Impairment tests on the Group’s assets resulted in the ageing Baken and Bloeddrif mines

being impaired to the value of R27,4 million (2016: R55,1 million).

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Trans Hex Group Annual Results Presentation 2017

GROUP PROFIT/LOSS AFTER TAX

2013 2014 2015 2016 2017 R million 85 23 191

  • 101
  • 183
  • 240
  • 210
  • 180
  • 150
  • 120
  • 90
  • 60
  • 30

30 60 90 120 150 180

2017: Loss includes impairment costs of R27,4 million.

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Wholly owned South African operations

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Trans Hex Group Annual Results Presentation 2017

SA PRODUCTION

2013 2014 2015 2016 2017 Carats 67 115 52 081 61 688 48 435 36 532 10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000 90 000 100 000

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Trans Hex Group Annual Results Presentation 2017

LOWER ORANGE RIVER – AVERAGE GRADE

2013 2014 2015 2016 2017 Average grade 1.05 0.92 1.29 1.22 1.75 0.00 0.50 1.00 1.50 2.00 2.50

2017: Average grade increased mainly due to the re-evaluation of ore accounting policies.

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Trans Hex Group Annual Results Presentation 2017

SA DIAMOND PRICES

2013 2014 2015 2016 2017 Price/carat $1 334 $1 238 $1 353 $981 $959 $0 $200 $400 $600 $800 $1 000 $1 200 $1 400

2017: Diamond prices declined mainly due to a decrease in average stone size to 0,70 carats per stone (2016: 0,97 carats per stone).

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Trans Hex Group Annual Results Presentation 2017

SA UNIT COST

1000 2000 3000 4000 5000 6000 50 100 150 200 250 300 2013 2014 2015 2016 2017 Gravel treated m3 ('000) Unit cost Rand/m3 Unit cost Gravel

2017: Operating cost at the LOR operations decreased by 11,6%, however the unit cost of production increased by 93,8% due to a 55,0% decline in volumes treated.

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Trans Hex Group Annual Results Presentation 2017

SA OUTLOOK

  • Stripping operations in the Baken central channel will continue

until the economically viable gravel in the main channel has been exhausted, which is expected to be towards the end of the 2018 financial year.

  • Bloeddrif Mine has been placed under care and maintenance.
  • Production from the wholly owned South African operations for the

2018 financial year is expected to be in the order of 37 000 carats.

  • Firm prices are expected in the short-term as market sentiment

remains solid in the commercial and manufacturing sectors.

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West Coast Resources operations

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Trans Hex Group Annual Results Presentation 2017

WEST COAST RESOURCES OPERATIONS

  • During the period, mining activities produced 79 041 carats at an

average grade of 32,73 carats/100 m3 compared to 16 517 carats at an average grade of 30,48 carats/100 m3 in 2016. In addition, the final recovery plant treated final recovery tailings and produced 1 465 carats (2016: 8 413 carats).

  • Sales amounted to R172,1 million at an average price of US$166

per carat (2016: sales of R49,4 million at an average price of US$208).

  • The 40% equity accounted loss for the year amounted to

R71,3 million (2016: loss of R13,6 million). Included in the results is the Group’s share of an impairment charge to mining rights, after tax, of R43,4 million.

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Trans Hex Group Annual Results Presentation 2017

WEST COAST RESOURCES OPERATIONS

(cont.)

  • The average grade decreased by 38% from 53,34 carats/100 m3

in 2016 to 33,28 carats/100 m3 in 2017 due to the treated gravel

  • riginating mainly (98,2%) from mining operations. The average

stone size amounted to 0,27 carats per stone (2016: 0,30 carats per stone).

  • Prospecting will continue to target high-priority areas that may

identify additional resources for mining.

  • Mining activities will remain focused on the Langklip area and on
  • ther sections of the Koingnaas area.
  • Production for the 2018 financial year is expected to be in the
  • rder of 150 000 carats, compared to 2017 actual production of

80 506 carats.

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Angolan operations

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Trans Hex Group Annual Results Presentation 2017

SOMILUANA PRODUCTION

2013 2014 2015 2016 2017 Carats 41 313 72 041 94 483 99 572 137 219 10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000 90 000 100 000 110 000 120 000 130 000 140 000

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Trans Hex Group Annual Results Presentation 2017

SOMILUANA AVERAGE GRADE

2013 2014 2015 2016 2017 Average grade 16.60 23.95 27.99 31.96 46.38 5 10 15 20 25 30 35 40 45 50

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Trans Hex Group Annual Results Presentation 2017

SOMILUANA DIAMOND PRICES

2013 2014 2015 2016 2017 Price/carat $352 $478 $458 $351 $500 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550

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Trans Hex Group Annual Results Presentation 2017

ANGOLAN OUTLOOK

  • During the coming year, mining operations will continue on the east

bank of the Luana River at Nzagi, in the south-west at Lulau, and at

  • ther areas currently being evaluated.
  • Production results and geological work through drilling and bulk

sampling indicate that carat production for the 2018 financial year is expected to be in the order of 120 000 carats.

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Conclusion

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Trans Hex Group Annual Results Presentation 2017

CONCLUSION

  • South African production for 2018 is expected to be in the order of

37 000 carats.

  • Operational and infrastructure improvements are continuing at West Coast
  • Resources. Production for the 2018 financial year is expected to be in the
  • rder of 150 000 carats.
  • Results at Somiluana Mine in Angola continue to exceed expectations and

production for 2018 is expected to be in the order of 120 000 carats.

  • Tight controls over cash and costs will continue to be exercised in all areas
  • f the Group’s business.
  • In respect of new business opportunities, the Group is actively evaluating

potential new diamond properties and pursuing opportunities to expand its diamond-marketing activities.

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www.transhex.co.za

Disclaimer: This presentation contains forward-looking statements about the Company’s operations, exploration

activities and financial conditions. They are based on Trans Hex Group’s best estimates and information at the time of

  • writing. They are nonetheless subject to significant uncertainties and contingencies, many of which are beyond the

control of the Company. Unanticipated events will occur and actual future events may differ materially from current expectations due to explorations results, new business opportunities, changes in priorities by the Company or its joint ventures, as well as other factors. Any of these factors may materially affect the Company’s future business activities and its ongoing financial results.