Listed Mining Companies
COMMENT PRINT By: Mariaan Webb
6th March 2008
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The Tanzania-based miner, which has a target of producing five-million carats a year by 2012, produced 762 073 ct in the first half of the financial year, and during the second half output had risen sharply by 23% to 938 061 ct.
The increase in production volumes was attributed to a change in mining practice to allow multiple producing faces to be mined concurrently.
“This new practice is possible due to improved security measures introduced at the mine,” TanzaniteOne said in a statement to the London stock exchange.
The company said that 2007 had seen continued growth and confidence in tanzanite with more retailers stocking and marketing the gemstone, and despite a weakened US economy, global demand for this stone was expected to gradually increase in 2008.
During the year under review, TanzaniteOne sold 1,7-million carats of tanzanite ($42.6 million), an increase of 19% compared with the previous year. This was due to the 42% increase in the number of carats recovered during the year.
Quality for quality, TanzaniteOne achieved a 10% increase in rough tanzanite prices for the year. This was in spite of ‘A-quality’ tanzanite sales contributing only 11% of sales by value, a 45% reduction in ‘A-quality’ tanzanite from 2006 where ‘A-quality’ sales represented 20% of sales by value.
The firm’s strategy to expand into other premium coloured gemstones also started in the year under review with the acquisition of a Tsavorite project.
This acquisition, of what potentially represented the largest-known single-source of tsavorite – a green gemstone – was in line with its strategy to leverage its position as a premium coloured gemstone producer.
The project, comprising 12 prospecting licences over 100 km2, is located some 20 km from the southwest of TanzaniteOne’s existing tanzanite operations.
The board and management were also a restructure to reposition the firm. It has appointed Zane Swanepoel as MD.
Edited by: Creamer Media Reporter
