MARKET UPDATE

 

TRANS HEX GROUP LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1963/007579/06
ISIN: ZAE000018552
Share code: TSX
("Trans Hex" or “the Group”)
 
MARKET UPDATE
 
Trans Hex is pleased to provide an update on its latest diamond sale and various matters pertaining to the Group.
 
TENDER SALE – JULY 2009
At the Group’s July tender sale 17 075 carats were sold generating a revenue of US $16,6million. The average price was US $973/carat. In total 86 stones in excess of 10 carats were sold with 13 stones in excess of 20 carats and two stones in excess of 50 carats in weight.
 
The sale reflected the continued upward rise in rough diamond prices which has been experienced since March 2009, as well as continued strong demand across the entire Trans Hex production range.
 
The Group’s cash resources have, as a result of the positive July tender sales, increased from R205 million at year end to current levels of R293 million.
 
The Chief Executive Officer, Llewellyn Delport said:
 
“As a result of retail diamond sales remaining sluggish, we remain conservative and any expenditure and costs will continue to be strictly monitored.”
 
CONVERSION OF RICHTERSVELD MINING RIGHTS
The Group’s Richtersveld mining lease which includes the Baken, Bloeddrif and Reuning operations has been successfully converted to a new order mining right.
 
SOUTH AFRICAN PRODUCTION
Current production from the Group’s South African operation is in line with the expectations as outlined at the time of the release of the Group’s year end results, during May 2009.
 
ANGOLA OPERATION
The feasibility study for the Luana Concession in Angola has been completed and approved by the Angolan Government. Pre feasibility drilling and bulk sampling programmes allowed the delineation of 3 million carats in Indicated resources and over 10 million carats in Inferred resources. Negotiations for the conversion of the current prospecting contract to a mining contract are in progress.
 
The Laurica and Fucauma operations remain mothballed with minimal care and maintenance costs being incurred.
 
CHIEF EXECUTIVE OFFICER’S COMMENTS
Llewellyn Delport concluded:
 
“The results from our July sale reaffirms the positive demand and price increase trend experienced since March 2009, which has assisted the Group to further increase its cash reserves and strengthen its balance sheet”.
 
 
Cape Town
21 July 2009
 
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
 
Namibian Sponsor
IJG CORPORATE FINANCE (PTY) LTD
 
Further enquiries please contact
Trans Hex Group Ltd         
George John Zacharias            
021 937 2011
 
ChilliBush Investor Relations                                
Lynsey Pharo
021 447 2107  
082 079 7961