LONDON (Alliance News) - Richland Resources Ltd Monday said pretax losses narrowed in its first half despite illegal miners affecting the company's operations in Tanzania during the period.
The precious gemstone exploration and production company said pretax losses narrowed to USD551,000 from USD719,000 for the six months ended June 30.
The company managed to increase production levels 28%, to 1.54 million carats from 1.21 million carats the previous year and recovered higher average grades of 93 carats per tonne compared to 61 carats per tonne during the period.
The company also lowered administrative costs and operating costs, while the company profited from a foreign exchange gain of USD954,000 compared to USD182,000 the previous year.
The company said sales were down 11%, to USD7.5 million from USD8.4 million as production optimisation was affected by illegal underground mining on the company's Block C license which resulted in significant danger to its employees, damage to the infrastructure on two of its mines, and the theft and damage of key equipment.
The Tanzanian government helped to remove the illegal miners and the area is now being reclaimed and prepared to restart in the company's fourth quarter.
The Bermuda-based company also gave out its condolences to the family of an employee who was shot dead assisting police in the removal of the illegal miners.
"Richland's tanzanite mine is highly efficient and complimented by a developing beneficiation and retail arm growing revenues and new points of sale. The period saw our investments in deriving increase value from extracted coloured gemstone marred by the ongoing break down in local security at the tanzanite mining areas in Northern Tanzania," Chief Executive Bernard Olivier said in a statement.
Beneficiation is the separation of ore into valuable substances and waste.
Richland shares were up 0.25 pence, or 3.12% to 8.25 pence in early trading Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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