Tanzanite Share Discussion Threads

[brando69] 18/1/2011 09:35

looking v good

[topvest] 17/1/2011 12:29

Yes, back positive again. Looks good.

[brando69] 17/1/2011 11:47

suspect we'll see a decent rise to around 17-18p from here in the short term

[weegeordie] 17/1/2011 09:28

looks like a 500k rollover.

[weegeordie] 17/1/2011 08:11

There should be news soon on various fronts, not least the progress of their own cutting and polishing business.

[ch1ck] 17/1/2011 07:55

Jean

Yes it may but I cant see the government not negotiating with one of the few industries which provides it with a steady income via tax and is providing jobs.

The problem is in all of these african countries, is that the coruption is widespread and normal rules donot apply.

Any move lower I see as a good time to pick up shares which seem to be rising

[jeanesy] 16/1/2011 17:14

Will this mean that the shareprice may fall further?

[topvest] 15/1/2011 18:00

Probably explains the selling this week. 31 December was the date set for the ban to be re-instated anyway, although I think TNZ were hopeful of getting a little more time. Anyway, they have had 4/5 months to line something up, so I suspect we will get an update soon.

[giant steps] 15/1/2011 16:04

TANZANIA RE-INSTATES BAN ON ROUGH TANZANITE EXPORTS
10 January 2011

[ch1ck] 14/1/2011 23:51

Buying more of these next week waiting for the turn

[ch1ck] 11/1/2011 11:44

ShareShark

Thanks for the post

[share_shark] 11/1/2011 07:22

TanzaniteOne: maiden JORC-compliant resource for Tsavorite project
Tuesday , 11 Jan 2011
TanzaniteOne has announced a maiden JORC resources statement for its Tsavorite Project (green gemstones), located 20km from its Tanzanite mine in NE Tanzania.

Highlights comprise:


•JORC-compliant Inferred Resource of 7.6-10.4 million bank cubic metres (Mbcm), or approximately 18.2-24.9Mt
•JORC-compliant Indicated Resource of 0.89-2.17Mbcm, or approximately 2.1-5.2Mt located within Inferred Resource
•Average Tsavorite grade of 1.6 carats per loose cubic meter for the Indicated Resource
•Estimated 1.4 and 3.5 million carats of Tsavorite located within the Indicated Resource only
•Further resource statement expected in 2Q11, following a second phase of bulk sampling

Comment

The result of an exploration programme started in 3Q09, this resource is commercially significant. Compared with the Tanzanite grade (50+cts/t) and production (1Mcts pa) it may appear modest, but the gemstones will be easily mined and recovered from unconsolidated gravels and the company should therefore achieve a good return. Also, being so close to the existing Merelani mine, it will be able to draw upon people, equipment and infrastructure readily available to it at marginal cost.

However, it is also difficult to determine what the announcement means economically as there are no costs given at this stage and it depends on the quality of the stones; and, therefore, their value. Typically, gemstones found in gravels and other secondary deposits are more consistent in size and quality than for primary deposits, but the concentration (grade) also tends to be lower; both of these characteristics are due to the winnowing effect of erosion and re-deposition. Garnet in general is semi-precious and not particularly valuable, but Tsavorite's rarity and vivid, intense grass green colour outperforms all but the best emeralds, the more commonly thought of green gemstone, and are highly prized.

Though the price of Tsavorites is typically a quarter that of emeralds (which themselves are often able to fetch prices higher than equivalent sized good quality diamonds), but 2-4x higher than Tanzanite (last year's fourth 'sight' achieved an average of US$10.6/ct), and the larger sizes especially so because of their rarity; prices typically range from a few dollars per carat (US$12-15/gram) for the smallest stones to US$80/ct rough for larger pieces.

Additional production means additional revenue. Putting an in-situ value of US$5/ct for the 1.4-3.5Mcts in the Indicated Resource gives a top end equivalent to £11m, two-thirds of the current market cap of the company (£17.6m). We therefore continue to see upside to the share price as the performance of the company's Tanzanite mine continues to increase production and improve profitability and the news (at the end of November) that Mike Nunn, the former CEO, has reduced his shareholding to less than 1% of the company, removing an overhang of more than 10% of the issued share capital. Plans to implement a commercial cutting centre in Tanzania are also well advanced.

Recommendation

We see this news as another positive development and will add an element of diversification to its present single product. Tanzanite is expected to benefit from the general uplift in global luxury goods demand which will spill over into the precious stones market. We have already seen a marked recovery in diamond prices and this can be expected to filter into other categories of precious stones.

TanzaniteOne's price, in our view, still represents an excellent opportunity and we continue to stand by our 34p price target, which we feel adequately factors in the perceived inherent Tanzanian risk around the New Mining Charter that came into force last year.

We expect an operational and marketing update in early February.

[bisiboy] 10/1/2011 19:20

i hope you are right about that
i need 100% to breakeven

[ch1ck] 10/1/2011 14:45

As a long term trader of these I have started re-buying. After the final fall in share price and the news of problems of exporting un-cut gems looking better I have bought quite a few and doubled my holding today but it was difficult to pick up large quanties of stock in one go but am happy with the price paid.

A new revenue stream should propell the stock to previously unthought of levels.

[brando69] 10/1/2011 09:35

50K taken at full ask. Fair to say we should be moving fairly quickly now

[brando69] 10/1/2011 08:47

here we go

[topvest] 10/1/2011 08:20

It all looks very positive. Any technical experts have a view?

[n0rbie] 10/1/2011 08:15

JORC alert!

[brando69] 07/1/2011 17:01

big buys at the end at full ask. expect to see it move on monday

[brando69] 07/1/2011 13:29

did the same thing at 12p... this will get pushed up by a couple of pence pretty quickly with a few more buys i suspect

[bongo bwana] 07/1/2011 13:18

VERY intersting! Escalating prices being paid for available shares. Someone hoovering, eagerly.