London, England — MININGREVIEW.COM — 07 March, 2008 – Tanzanite One Limited – the AIM-listed producer of one of the world’s rarest gems – experienced a highly successful year in 2007 with substantial increases in revenue, production, and particularly profits.
Released in London yesterday, the company’s financial results for the year ended 31 December, 2008 reveal an impressive 267% leap in profits from US$1.8 million (R13.5 million) in 2006 to US$6.6 million (almost R50 million) last year. Revenue rose 18% from US$36 million (R270 million) to US$42.6 million (R320 million) in the same periods.
“The sharp profit increase was due largely to the rise in carats recovered during the year, in line with the 60% increase in tonnes processed,” the results statement revealed.
The Tanzanian-based mining company processed 25 367 tonnes last year – an increase of 60% on the 15 896 tonnes processed in 2006. This led to a 38% rise to 1.7 million carats in the number of carats recovered in 2007, as opposed to the 1.2 million carats the previous year. “The significant improvement in production rates was achieved due to the various steps implemented to enable multiple producing faces to be mined concurrently,” the statement explained.
Cost per carat was also encouraging, dropping from US$4-47 (R33-50) in 2006 to US$3-39 (R25-50) last year. A 10% quality-for-quality price increase was achieved as well
Turning to capital expenditure for the year, the US$2.6 million (almost R20 million) spent involved upgrades to security, including the purchase of X-Scan security machines and equipment for $0.8 million (R6 million)), as well as US$1.2 million (R9 million) on mine development and sundry plant and equipment.
“Like much of Sub Saharan Africa,” said the results statement, “frequent national power interruptions continued to occur in 2007. It is anticipated that this will be alleviated in 2008 with the completion of a power stabilising project commissioned in late 2007,” it concluded.