JOHANNESBURG (miningweekly.com) – JSE-listed Trans Hex expected to report a net loss for the first half of the current financial year on the back of strike action and grade underperformance at its South African operations.

A 21-day strike by employees over wage increases, as well as dwindling output and reserves, and the resultant lower grades, at the company’s local operations had contributed to the group’s loss of R53.9-million for the six months ended September 30, compared with the profit of R32.9-million delivered in the comparative period the year before.

Trans Hex expected to report a loss and headline loss a share of 51c for the interim period under review, compared with earnings and headline earnings a share of 31.6c and 21.5c respectively during the six months ended September 2012.

The South African operations generated a pre-tax loss of R88.6-million for the period under review, compared with a profit of R34.2-million in the corresponding period in 2012.

The group, which would release its full half-year financial results on November 1, expected the total after-tax loss from continuing operations to fall to R69-million, compared with the prior interim period’s profit of R24.9-million.

The South African operations reported a contraction in production for the period under review – delivering output of 21 849 ct, down from the 35 865 ct produced in the prior comparative period.

Sales revenue from the local operations decreased by 21.5%, from R330.7-million in September 2012, to R259.7-million during the first half of 2013.

Meanwhile, Trans Hex’s Angola operations achieved a turnaround, with a net profit of $5.9-million for the period, compared with a loss of $900 000 in the first six months of the previous financial year.

Production at Somiluana increased, from 22 600 ct in the six months ended September 2012, to 35 779 ct during the first half of the current financial year, with sales reaching $16.9-million – double the $7.9-million achieved in the first half of the previous year.