TanzaniteOne Profits Skyrocket

TanzaniteOne enjoyed significantly higher revenue in the first half of 2005, according to a company report. TO said its January–June revenue of $22.4 million—up from $13.7 million for the previous six-month period—resulted from “increased tanzanite sales and higher prices achieved due to the higher proportion of gem-quality rough tanzanite recovered during the period.”

The company says revenue margin of 66 percent translates into a net profit of $7.2 million (or roughly 10.26 cents per share). TanzaniteOne is listed on the London Stock Exchange.

In its financial review, TO reported average rough prices of approximately $13 per carat (compared with $9 per carat for the previous six months). According to TO, “the significant increase in revenue per carat on mine is a direct result of the improvement in the quality of the produced material [color/clarity/size] over the period.” Also aiding the profit picture, cash costs have remained constant at $2 per carat for the past 12 months.

According to TO’s current report, its jewelry and polished tanzanite wholesale business, The Tanzanite Co., continued its expansion into new territory. Polished and set tanzanite contributed $3.4 million in revenue in the first six months of this year. TO is promoting its own branded jewelry line, called Tanzanite Blue.

For more information, visit www.tanzaniteone.com.