HomeDiamonds & GemstonesTanzanite back in profit

Tanzanite back in profit

The processing
plant at Tanzanite
One’s mine in
London, England — MININGREVIEW.COM — 28 September 2010 – Tanzanite One Limited “’ the world’s largest tanzanite miner “’ has risen to a 16-week high in London trading, after returning to profit in the first half of 2010.

A statement released here said the company’s shares climbed 7.9% to 10.25 pence “’ the highest price since 8 June. The company reported first-half net income of US$728 000 (R5.3 million), compared with a net loss of US$546 000 (R4 million) a year earlier, after demand for the bluish-hued gemstones had recovered.

“We are seeing a definite increase in demand and prices over the last three quarters, and we are hoping that it will continue,” CEO Bernard Olivier said by telephone. “We definitely haven’t seen the peak yet.”

Tanzanite production rose 21% to 1 million carats, the Hamilton, Bermuda-based company said in a statement. Sales jumped 74% to US$8.6 million (R62.8 million), of which US$1.69 million (R12.3 million) was for cut stones “’ a proportion that Tanzanite One plans to increase, according to Olivier.

The company decided against paying a dividend, saying it wanted to have a significant cash reserve before restoring payouts. “Since we’ve only now returned to profitability, I doubt it will be this year,” Olivier stated.

Tanzanite is mined from the world’s only known deposit, at the foot of Mount Kilimanjaro in Tanzania.