TanzaniteOne’s Highlighted 2005 Financial Report

Net profit for TanzaniteOne, the tanzanite mining company, after tax, was posted at $9.8 million for 2005. This is reportedly a gross margin of 61 percent, on $41.1 million in revenue. Basic earning per share of stock was 13.89 cents.

Operations recovered 1.4 million cts. of tanzanite with significant production increases in the second half of last year. Optical sorting helped boost the numbers. Higher-grade material was up 12 percent to 55 cts. per ton.

Although it didn’t mention internal theft, the end-of-year report noted that security at the mine site was enhanced by introducing an X-ray body scanner.

TanzaniteOne says drilling results indicate the presence of mineralization at extensively greater depths than previously thought. At present, however, it expects block C of the mine to produce until 2015–2020.

On the business side, Ian Harebottle, former chief operations officer, was appointed chief executive officer effective May 1, 2006.

And finally, a Sightholder Preferred Supplier strategy was begun with six initial sightholders appointed. Sights kept the six supplied with product, and prices for finished goods are gradually increasing as predicted.