Trans Hex Group posted its performance report for the first quarter of 2010, noting the demand for rough diamonds is “very buoyant,” driven by buying out of China and India.

The diamond company's sales revenue in Q1-2010 came to R716 million, cash operating costs dropped by R165 million, mining income increased to R52 million and profits after taxation came to R22 million.

Overall, Trans Hex Diamonds' revenues improved by 12.5%, which the company attributed to increased volumes and higher diamond prices from the South African operations, despite the stronger Rand/Dollar exchange rate.

In a press release, the diamond producer said that prices for rough gems have shown a "satisfactory recovery." Chief Executive Officer Llewellyn Delport said that the company expects rough diamond prices to “remain firm.”

"After a difficult previous financial year when demand and prices for rough diamond production fell significantly due to the global financial crisis, the current year saw continual growth in both of these key areas," Delport said.

"Prices have improved significantly and demand for Trans Hex production has remained strong… These achievements are largely attributable to two factors: stringent cost management that resulted in substantial reductions in cash operating costs against the previous comparative period, and the recovery in diamond prices," he added.