Tanzanite Share Discussion Threads

[dasein] 03/6/2008 23:08

Reverend
Not a shorter alas, just scribbled down my impressions on a rainy evening many moons ago..well out of date now ..time waits for no man and all that jazz

Like everybody else, suppose I just recognised the unique monopoly TNZ have..
and was wondering why the share appeared to be so cheap.

Never mentioned nationalisation, and certainly didn't/don't expect it.......good president... new government in place ..international treaties..anti corruption policies etc etc

(although at the time I wrote the Government was recovering from a corruption scandal..hardly idyllic stability)

But did expect the (new) government to try and take a bigger chunk of the profits.There appears to be strong feeling in the country that the people are being short changed by the miners..... and politicians being politicians.....

and it was looking entirely possible according to a bloomberg article and recent local press





Tanzania Gov't Seeks Higher Taxes on Mineral, Gem Mining

"Mining companies in Tanzania will soon be faced with a tax increase in June, according to local media reports.Tanzania's minister of finance Mustafa Mkulo told The Citizen that the government determined mining companies should pay higher taxes afterreviewing it's tax structure for the 2008-2009 national budget. He added that the budget is scheduled to be presented to the national assembly next month.

Since 1998, mining interests have enjoyed incentives and tax breaks with a royalty fee around 3 percent, but rising gold prices have spurred government
to remove these incentives and increase royalties and taxes. The Tanzanian government is reportedly interested in earning no less than 10 percent
of annual production of its gold, diamond and tanzanite resources."


However a recent article in the Tanzanian Sunday Citizen indicates that mining companies already operating will NOT be affected



Which should be good news for your ecclesiastical holding..

although..

"Judge Mark Bomani, the chairman of the Mining Review Committee, which presented its report to President Jakaya Kikwete in Dar es Salaam, proposed that the existing companies be approached and persuaded to abide by the new rules, which are meant to enable to country to gain more from its vast mining interests."

The South African links you mentioned do not appear to be as strong as you think..... according to the main man himself




"From now henceforth Tanzanite-One should be known as a 'Global company with its corporate offices based in Dar-es-Salaam Tanzania,"pointed out Ambassador Mpungwe who apparently was being irked by the local media's description of Tanzanite-One as 'the giant South African Mining Company.'

"We ceased to be South African many years ago and in fact we recently ended all the company's operations in South Africa and closed down our Johannesburg offices," he maintained, adding that there were no more links connecting Tanzanite-One to South Africa."

I am still not convinced, but keeping an open mind,and may yet succumb to temptation. There is no doubt about the fantastic monopoly this company has, and the increasing popularity of the Gem. So good luck with your investment, hope you make enough to fix that leaky roof ....(although shouldn't that be an ecunemical matter ?)

[brando69] 02/6/2008 12:46

FRR also looking good... as is JRVS

[bmw566] 02/6/2008 11:53

Lots of nice, safe British blue chips to choose from if you wish to avoid these dangerous foreign shares. I hear Bradford and Bingley are going cheap!!

Good to see you're trying to save souls on that thread too Buywell2. So magnanimous, restored my faith in humanity as the reverent says ... The Lord be praised.

I've cashed all my share chips in now, so consider me converted.

[brando69] 02/6/2008 11:26

looks like time to bail out and look for something a bit safer...

ROS for example

[rev chadband] 02/6/2008 11:24

Well, well, a reply. What a pleasant surprise.

I take it for your remarks that you consider yourself a professional investor. And such consideration for us poor private investors rather than viewing us as sheep to be sheared. A double surprise.

Whatever the reason for Ian Harebottle leaving (and there could easily be cause for concern) linking it with two completely unrelated incidents is rather desperate stuff. You could probably find such newspaper entries for any African country - in fact probably more examples in most other countries given that Tanzania is one of the more stable states on the continent.

As to the threat of nationalisation I think the chances are pretty slim. Tanazania tried to go down that route in the 60s and 70s with disastrous consequences for the economy. Add to that the fact that Tanzanite is not some foreign multinational but incorporated in South Africa as well as Tanzania itself (in addition to Dubai and Bermuda). And it would put all those international loans at risk. This is isn't South America the revenues from mining just aren't the level to make it worth thinking about.

No all this rather smacks of the rumour mongering and exaggeration of a shorter than free and open discussion e.g.

Established European management forced out. Ian Harebottle (who joined the company in 2004) is replaced in his roles by one Tanzanian and one South African. Mpungwe having been with the company since 2000. All the other mostly European directors remain the same. And this is evidence of impending nationalisation.

Well I am happy to wait and see. The collection money remains safe as far as I can see and if you shorters force it any lower (bear squeeze and repenting sinners anyone) I may be tempted to dip into the roof repair fund.

The Lord be praised.

[buywell2] 02/6/2008 10:19

Easy Rev

I don't like to see small private investors get ripped off

This share could result in them being left with zip in the event of a government nationalization of assets.

That established european management are being forced out and are selling their shares only reinforces the case that this is becoming ever more likely.

better say your prayers methinks if you are holding, hope you have not used the parish collection money

amen

[rev chadband] 30/5/2008 10:46

Yes thankyou buywell2. This has now been posted three times (twice by you) in a what is only a short thread.

I am sure even the newest of newcomers is now aware of this and probably wondering why you are so solicitous of their welfare, as am I.

[buywell2] 30/5/2008 10:30

To Newbes ..... this should come with a government health warning



Dasein - 20 Mar'08 - 00:26 - 149 of 171


Been watching this one for a while,and wondering if there was a catch...and after researching a little decided against

Hope you dont mind if I share some of my findings,not trying to be bearish or unduly negative, but in these volatile times am looking for reasons not to invest first, (no reason why the stock should not soar despite my risk aversion,so good luck to all holders)

My first concern was why did Ian Harebottle leave ?..seems to me that he was a hugely enthusiastic CEO who was driving the company forward in a most impressive way,

Mr Ami Mpungwe has now effectively assumed control..



Very well connected ,but with a corruption scandal having recently brought down the government I'm not sure it that is a good or a bad thing

From the accounts
Ian Harebottle has stepped down as CEO of TanzaniteOne Limited and will leave the company with immediate effect to pursue other interests. Mr Harebottle joined the Group following TanzaniteOne's acquisition of Afgem's tanzanite assets in 2004. Commencing as Chief Operating Officer, he took on the role as CEO in May 2006.
Mr Zane Swanepoel has been appointed Managing Director of TanzaniteOne Limited effective immediately and will be driving the operational performance and growth of the tanzanite operations and the tsavorite project. Mr. Swanepoel joined the Company in September 2005 as General Manager - Mining. He has 25 years experience in mining of which 18 years has been at senior mine management level. Mr. Swanepoel has been instrumental in coordinating and developing the Group's operational growth to date and will continue to be based at the mine in Meralani.

Mr Ami Mpungwe, currently non-executive director of TanzaniteOne Limited, will assume the role of Executive Deputy Chairman. Mr Mpungwe holds directorships in a number of companies including National Bank of Commerce, Tanzania Breweries and Air Tanzania. He has an honours degree in International Relations and Political Science and has spent 25 years in the diplomatic service. Mr Mpungwe will be responsible for guiding the Company's presence in Tanzania.


and from the local press



Tanzania: Tanzanite-One Arusha Boss 'Relieved of Duties'
Arusha Times (Arusha)

8 March 2008
Posted to the web 9 March 2008

Valentine Marc Nkwame
Arusha

Tanzanite-One, the giant South African mining company which runs mining operations in Arusha town and Merani hills has reportedly elbowed out its President and chief operating officer here, Ian Harebottle, according to reliable sources from inside the company.

Ian Harebottle himself has admitted that his company's board of directors has suspended him from operations but he did not explain why the decision was reached. "The board has just decided to relieve me my duties," said Ian adding that he will however not be leaving Arusha.


Elsewhere in the country



Tanzania: British Duo Flee Moshi After Death Threats
The East African (Nairobi)
3 March 2008
Two British investors have fled Moshi in northern Tanzania after receiving persistent death threats in the wake of an invasion of their multimillion shilling Silverdale Farm by a large herd of cattle that caused massive destruction to property.
"What began as a dispute between partners has evolved into a major row that now threatens diplomatic relations between Tanzania and the United Kingdom.
Last week, a British MP, Roger Gale, laid a White Paper before the UK Parliament asking for the suspension of all aid to Tanzania until a solution to the matter is found.
"My constituents have lost their investment, lives have been placed in danger and, most important of all, innocent people have been imprisoned," he said.
Mr Gale recounted how, between 2000 and 2004, the Silverdale farm in Moshi was owned by Benjamin Mengi, whose brother is the Tanzanian media magnate Reginald Mengi."

Finally a fascinating document that gives in depth research into the background and state of the tanzanite industry

[topvest] 25/5/2008 10:17

Yes, seems to be recovering nicely. Still not received the annual report!

[ch1ck] 23/5/2008 11:56

nice rise again today with the rest of the markets down lets hope it holds above 60p

[hyper al] 22/5/2008 16:09

and then 80p
and then 90p

or whatever

[mikehardman] 22/5/2008 16:03

added a few times, 50p
oo - that took out the 50pon offer, now OMLOTO@52
on its way back up to 60p now ? (and then 70p)

[topvest] 19/5/2008 21:51

Anyone received this year's annual report yet?

[bmw566] 01/5/2008 10:05

Agreed, that's why it's a speculative buy, not one to stake an inheritance on. I am quietly confident though.

[buywell2] 01/5/2008 09:57

Target could also be zero if this mine gets nationalised

Tanzania might be the next Zimbabwe

[bmw566] 30/4/2008 11:47

Agree, I looked into this at the time. Very good research and points made were all relevant.

Chose to buy still because I like their monopoly position and dividend. The floods in neighbouring mines may have an impact on supply which could push prices up.

Have bought this in the past and it can really fly with a good write up. As a beaten down small cap at the bottom of chart range and near market cap, with sentiment against it, it's obviously not moving at the moment, but I'm buying on a two year horizon, target £1.00.

[buywell2] 30/4/2008 11:39

Note that after Ian Harbottle was ousted , another director has sold shares

See RNS in header

Something is afoot methinks

I wonder what this Ami Mpungwe has planned, one thing for sure I reckon is it isn't for the benefit of UK investors

[buywell2] 30/4/2008 11:34

This guy raised some very real concerns which nobody here answered



Dasein - 20 Mar'08 - 00:26 - 149 of 160


Been watching this one for a while,and wondering if there was a catch...and after researching a little decided against

Hope you dont mind if I share some of my findings,not trying to be bearish or unduly negative, but in these volatile times am looking for reasons not to invest first, (no reason why the stock should not soar despite my risk aversion,so good luck to all holders)

My first concern was why did Ian Harebottle leave ?..seems to me that he was a hugely enthusiastic CEO who was driving the company forward in a most impressive way,

Mr Ami Mpungwe has now effectively assumed control..



Very well connected ,but with a corruption scandal having recently brought down the government I'm not sure it that is a good or a bad thing

From the accounts
Ian Harebottle has stepped down as CEO of TanzaniteOne Limited and will leave the company with immediate effect to pursue other interests. Mr Harebottle joined the Group following TanzaniteOne's acquisition of Afgem's tanzanite assets in 2004. Commencing as Chief Operating Officer, he took on the role as CEO in May 2006.
Mr Zane Swanepoel has been appointed Managing Director of TanzaniteOne Limited effective immediately and will be driving the operational performance and growth of the tanzanite operations and the tsavorite project. Mr. Swanepoel joined the Company in September 2005 as General Manager - Mining. He has 25 years experience in mining of which 18 years has been at senior mine management level. Mr. Swanepoel has been instrumental in coordinating and developing the Group's operational growth to date and will continue to be based at the mine in Meralani.

Mr Ami Mpungwe, currently non-executive director of TanzaniteOne Limited, will assume the role of Executive Deputy Chairman. Mr Mpungwe holds directorships in a number of companies including National Bank of Commerce, Tanzania Breweries and Air Tanzania. He has an honours degree in International Relations and Political Science and has spent 25 years in the diplomatic service. Mr Mpungwe will be responsible for guiding the Company's presence in Tanzania.


and from the local press



Tanzania: Tanzanite-One Arusha Boss 'Relieved of Duties'
Arusha Times (Arusha)

8 March 2008
Posted to the web 9 March 2008

Valentine Marc Nkwame
Arusha

Tanzanite-One, the giant South African mining company which runs mining operations in Arusha town and Merani hills has reportedly elbowed out its President and chief operating officer here, Ian Harebottle, according to reliable sources from inside the company.

Ian Harebottle himself has admitted that his company's board of directors has suspended him from operations but he did not explain why the decision was reached. "The board has just decided to relieve me my duties," said Ian adding that he will however not be leaving Arusha.


Elsewhere in the country



Tanzania: British Duo Flee Moshi After Death Threats
The East African (Nairobi)
3 March 2008
Two British investors have fled Moshi in northern Tanzania after receiving persistent death threats in the wake of an invasion of their multimillion shilling Silverdale Farm by a large herd of cattle that caused massive destruction to property.
"What began as a dispute between partners has evolved into a major row that now threatens diplomatic relations between Tanzania and the United Kingdom.
Last week, a British MP, Roger Gale, laid a White Paper before the UK Parliament asking for the suspension of all aid to Tanzania until a solution to the matter is found.
"My constituents have lost their investment, lives have been placed in danger and, most important of all, innocent people have been imprisoned," he said.
Mr Gale recounted how, between 2000 and 2004, the Silverdale farm in Moshi was owned by Benjamin Mengi, whose brother is the Tanzanian media magnate Reginald Mengi."

Finally a fascinating document that gives in depth research into the background and state of the tanzanite industry

[buywell2] 30/4/2008 11:23

Are weather conditions still bad ?

Is mining suspended ?

[bmw566] 29/4/2008 16:41

Well Dividend was a nice surprise today. 6% on the price I paid. Share price down almost 20% since then though, but been pretty static for last couple of weeks. I'm going to dip my toes in again soon to average down as bottom must be 20% nearer than it was at my last punt (investment sorry). Strategy for this one is find the bottom and hold for a few years for growth and dividend. Small holding so shouldn't have to endure too much pain.

[dickbush] 29/4/2008 11:40

guru

FYI

[guru11] 16/4/2008 21:53

I have taken a slight interest in Tanzanite of late.
What is the price per carat now, and where do we see the price in 10 or 20 years time? Any comments please. One report quoted a stone in Russia that is no longer mined and the price of that stone is now far higher than it was originally, which makes me think. They say that tanzanite is much rarer than diamonds but then at the end of the day it all boils down to the economics of supply and demand. If the demand is low then the price will stay lower than that of diamond, but who knows.

[sheeneqa] 05/4/2008 10:22

One gem Noventa produces from its Mozambique mines is morganite. This is a rare pink beryl gemstone. It's from the same family as emerald and aquamarine. There is an exclusive joint venture with NASDAQ-quoted jewellery manufacturer LJI, whose retail jewellery chains span across China. Noventa sells its rough morganite at $1,670 a kilo to LJI, and gets 49% of any jewellery sales profits on top of that.

And as a hedge for its jewellery business Noventa also mines tantalite. Key use of this rare stone is in capacitors for electronics and mobiles. Supply/demand balance is forecast to slip into deficit. Top of the pops rating comes from the fact that the US Defence National Stockpile Centre exhausted its inventories in 2006.

Another little AIM gemstone miner is TanzaniteOne. This one mines the gloriously blue tanzanite in, of course, Tanzania, but also mines tsavorite. Fascinating company this but, by the way, the share price is heading south; it seems investors don't like the latest news. It cannot be the figures – they show some good rises. One can only deduce that perhaps they don't like the latest change to local management. A bit of resource nationalism going on here?

TanzaniteOne practically invented tanzanite. Discovered only forty or so years ago, it was not really marketed until the 1990s. The amazing thing about gemstones is that a number of others have equally short histories. Seems we are all suckers for a new pretty face – though the face of this brilliant blue stone has to be heated to 450 degrees to develop its colour.

The disadvantage to these new stones is that they carry no myths or magic. Key to their success is the way De Beers played diamonds – marketing. It can be done! Tanzanite became popular following marketing by legendry New York jeweller Tiffany. In 2002 the stone was added to its lists by Jewellers of America as one of the December birthstones.

Regards,

Erin Hamilton and Isabel Turner
For The Daily Reckoning

[topvest] 31/3/2008 17:08

Very robust RNS from a TNZ perspective, albeit an awful incident for locals and those involved. Underlines that mining properly is much safer than the cowboy outfits around and about.