Tanzanite Share Discussion Threads

[thinking] 09/6/2010 15:10

This will be inetresting, not sure at this stage how it will affect TNZ as I am not close enough to its costs?

[n0rbie] 09/6/2010 15:04

Not good at all...

It seems to only apply to exporting raw gems though, does anyone know what % of their sales that is?

[pugugly] 09/6/2010 13:22

Very bad news (imo & dyor)

Could well spell the beginning of the end for the coy. I was on the point of investing but will not now touch. The Gov are very much at risk of driving all miners who can relocate of invest to other countries.

cannot of course apply to Tanzanite but many jewellers want to cut stones to their own specifications so will (imo & dyor) switch where they can.

Key extracts from the above article

" The law change threatens to "significantly" reduce the competitiveness of Tanzania's mining industry, the nation's Chamber of Minerals and Energy said on May 3.

Certain provisions in the act, such as the processing of gemstones locally, could "stagnate development" of the industry, Emmanuel Jengo, executive secretary of the chamber, said at the time.

Shares in Tanzanite One were unchanged at 10.25 pence in London, giving the company a market value of 11.6 million pounds ($16.7 million). The stock has fallen 34 percent during the past 12 months."

[giant steps] 09/6/2010 13:12

8th June 2010 - Ban on export of raw stones

[jameswafc] 28/5/2010 20:17

Worth a read...

May 20, 2010

Tanzanite One Looks Set To Benefit From A Recovery In Demand From The USA

If you're going to be mining a mineral that's so rare there's only one known occurance in the world, you might as well have the world's only PhD student in that type of mineralogy running your company. Step up Bernard Olivier, recently appointed chief executive of Tanzanite One, in a long overdue move that was announced to markets late in March. Bernard's got a long history with Tanzanite One, has worked the mine itself for some years, and has latterly been cutting his teeth in the corporate world with directorships at Bezant and at Tanzanite One itself.
This is a company that's been through its share of top executives in recent years. For a while Mike Nunn, the man who took it to market, ran it before he cashed his chips and made way for fomer operations boss Ian Harebottle. Then Ian stepped aside and there was something of an interregnum, during which time a hostile bid came in and the company suddenly woke up to its nakedness in terms of having anyone in the City capable of defending its interests. There was a scramble to make a defence, which, duly done, succeeded in part because the would-be acquisitor, Gemfields, seemed to lack the ability to follow up its initial success in destabilising the company.
It was at that stage that Bernard was brought onto the board, at the back end of 2008, and now, with getting on for two years' worth of experience under his belt, his elevation to the albeit newly created top position seems timely. The man he's nominally taken over from, Zane Swanepoel, has reverted officially to the role he's always done anyway, that of chief operations officer, a role to which, with his bluff, no-nonsense approach, he's eminently suited.
Bernard has a much more subtle and insightful manner. His appointment will have been well appreciated by industry participants in the City of London, where he's well-known and, which isn't always the same thing, well-liked. Perhaps more importantly as far as his maiden year as chief executive is concerned, his timing seems to be spot on. The tanzanite market is picking up, and although he concedes that it's not all sunshine and roses, Bernard is reasonably confident in presenting his company as a turnaround story.
The latest financial results, for the year to December 2009, show that the flow of losses has been significantly stemmed, even allowing for a fall in tonnage and grade. That's partly because prices have been strengthening, and partly because operating expenses have dropped from the whopping US$18 million booked in 2008 to a far more manageable US$9.9 million this time round. There's still some way to go before the losses turn to profits, but there are at least some encouraging signs, not least the upward momentum in tanzanite prices that has been showing through recently.
During the current quarter tanzanite prices have risen by a very satisfying 16.5 per cent. That'll show through as a nice boost to gross margins when the next financial accounts come in, and gross margins already stand at a nice enough 48 per cent. Having said that, tanzanite prices are unlikely to rise at that rate for the whole year. More likely, reckons Bernard, the overall rise for the year will come in at around 25 per cent.
Much of that strength is down to the returning strength in US demand. Tanzanite One still derives most of its sales from the US, and interest from that quarter is picking up. The tanzanite market seems to be running on a six-to-eight month time lag behind the diamond market, according to Bernard, where prices for rough stones have shown a dramatic improvement since about the middle part of 2009.
When and if the price rises strongly enough, the company is ready and waiting to restore production to its former, pre-credit crunch level of three million carats per year. Production was cut back heavily as the global economy contracted, but the company has gradually been bringing it back up again. According to Bernard, Tanzanite One should produce around 2.2 million carats this year, having found enough cause in 2009 to exceed the 1.7 million carat target by 200,000 carats.
With the corresponding increase in price Bernard is fairly confident that that increase in output will lead the company back into profitability this year. It won't be a moment too soon, either, as the shares could use a real boost. At the current 11.25p, they are trading at a long way from the 45p at which Gemfields tabled its hostile offer. Longer-term, there may be a lot more value inside the company as the tanzanite operation recovers, and as it slowly brings its new tsavorite asset forward. It's now up to Bernard Olivier to deliver on that value.

[giant steps] 24/5/2010 09:13

Balance sheet suggests £31m, market valuation £11.58m - nice gap

[dickbush] 21/5/2010 16:07

seagreen

You should keep your typing finger and your money in your pocket, seagreen. You clearly can't read a balance sheet or work out cash flow.

[dickbush] 21/5/2010 10:39

A placing at 9p?

[dickbush] 18/5/2010 13:41

Second half EBIT was negative $2.0 mil v negative $2.17 mil in the first half.

They lost circa $1 mil of tanzanite from the now closed South African office (pursuing insurance for loss).

So that's $3 mil of the $3.5 mil decline in net cash ($4.2 mil including the decline in inventory) in the last 6 months.

With a 20% increase in tanzanite prices from the second half and the promised increase in production (and sales volume?), they will be looking at only circa break-even EBIT in the current first half.

I agree with you, jimmyjagger. They need cash-again.

Let's hope the Chinese and Indians get an appetite for Tanzanite and Tsavorite, and soon.

[brando69] 18/5/2010 13:27

cash call coming

[jimmyjagger] 18/5/2010 12:03

Yes they're running on empty. A placing at 10p is on the cards here

[dickbush] 18/5/2010 11:56

Revenue increased 54% from the first half to the second and Gross Margin rose from 39.7% to 53.6% but that seems to be the extent of the good news. Net cash looks to me to be down from $4.16 mil to $0.62 mil.

[paul1967] 13/5/2010 22:16

Results Friday or Monday.

[nick rubens] 12/5/2010 16:02

Alot of turnover today. Last few RNS's have been positive. I'm suprised its trading so low and with alot of director buying at higher levels prior. I'm holding these at the moment but down on my initial buys. :(

[ch1ck] 27/4/2010 16:24

Again a very positive day with most of the trades coming in as buys and net volume up again.

Should not be long till we see a move up

[topvest] 26/4/2010 21:00

I agree - in the next 3-6m I would hope this will break out of this range.

[ch1ck] 26/4/2010 20:43

Watching this one closely now volumes are increasing and am expecting a break out soon

[n0rbie] 24/4/2010 15:54

Gemstones identified by the new law include diamonds, tanzanite, emerald, ruby, sapphire, turquoise, topaz, and others. Gemstone producer Tanzanite One (TNZ.L), will not be affected by the new ownership rules.

:D

[durby] 24/4/2010 13:15

here's the new mining act if anyone fancies reading it - 90 pages!! Will be reading it later ...

[ch1ck] 23/4/2010 09:50

Not this time Stateside I have put the fuXXXXg house on this one

[stateside] 23/4/2010 08:41

Here we go again. 0.75p up one day & then 3 days of losing 0.25p Aaagh!

[thinking] 21/4/2010 15:03

With the number of sells going through I am surprised this share has held its gain, its possible their will be a big buy after the bell shown which would make sense, but 500k to 100k the price would normally drop back