15 Jun 2010 07:00
TanzaniteOne Limited
("TanzaniteOne" or "the Company") (AIM: TNZ)
Sales and Marketing Update
TanzaniteOne Limited ("TanzaniteOne" or "the Company") (AIM: TNZ), the gemstones producer and developer, today announces its second unaudited sales update for the year.
Highlights
·; Second official sale of 2010 resulted in a revenue of US$ 2.01 million
o US$ 5.44 million in sales to date in 2010
·; Average overall quality weighted price increase of 4.5% per carat price since previous sight (March 2010)
·; 366,108 carats of rough tanzanite was sold at an average of US$5.5/carat
·; Conversion of GRAFGEM MoU to joint venture ("JV") agreement
o enables expansion of Tanzanian cutting and polishing facility
Sales
The second formal modified "sight" sale for 2010 was conducted from 19 to 21 May 2010 in Dubai. Revenue from sales of US$2.01 million was achieved at the sight from the sale of 366,108 carats of rough tanzanite, at an average of US$5.5 per carat. All rough tanzanite presented at the Dubai sale was sold and the price achieved ranged from $1.70/ carat to $110/ carat. The bulk of the material sold by weight was from the BL(i) category resulting in the larger amount of carats sold, but lower average price achieved compared with the March sight (see the grading and classification system in the notes to editor section).
An average overall quality weighted price increase of 4.5% was achieved at the Dubai sale, relative to the previous sight conducted in Hong Kong in March 2010. The indicated demand for the product is currently still exceeding supply, signalling a continuation of the strengthening in the tanzanite gemstone market.
The third official sight-sale for the year is scheduled for the last week in June 2010 in Dubai.
GRAFGEM Joint Venture
TanzaniteOne and GRAFGEM have successfully converted the Memorandum of Understanding, entered into by the two parties in September 2009 into a formal JV agreement. The JV has been established to create a globally unique cutting and distribution collaboration enabling full control from the mine to the final cut product for tracing and ethical compliance. Grading will be done according the Tanzanite Quality ScaleTM and the precision through the ExcellentCut label.
GRAFGEM has developed and established its own unique cutting techniques and methods meeting the highest standards and qualities of the worldwide gemstone industry. ExcellentCut is a label for a concept created by GRAFGEM. It ensures absolute precision cut, perfect sorting and quality check of color gemstones, all processed in house by fully respecting ethical and environmental aspects. The sort of cuts and cutting procedures, techniques and equipments are developed and tested as prototypes by the expert staff of GRAFGEM in Switzerland. They are implemented and exclusively applied in GRAFGEM's own cutting facility for serial production. For more information on GRAFGEM please follow the GRAFGEM ExcellentCut link located on the Company's website, www.tanzaniteone.com
Commenting today Bernard Olivier, Chief Executive Director, said: "We are encouraged by the continued increasing demand for tanzanite gemstones and an increase of 4.5% of the weighted average carat price over the 2 month period from the March sight is testament to this demand. We continue to build our precision cutting and marketing arm with a joint venture with GRAFGEM. The agreement will further enable the expansion of TanzaniteOne's advanced cutting and polishing facilities in Tanzania
Notes to the Editor:
The intrinsic attraction of tanzanite and the finite nature of a single known resource at the foothills of Mount Kilimanjaro in northern Tanzania are undoubtedly part of tanzanite's allure.
TanzaniteOne is the largest and most scientifically advanced miner and supplier of rough tanzanite, a unique position that affords it the opportunity to support and influence the entire channel, from mine to market, ensuring that maximum stakeholder value is achieved at each stage of the process.
Our leading position in the tanzanite market has ensured TanzaniteOne the recognition and respect of its peers and provides the opportunity for expansion into a broader range of PCGs located at various key sites around the world.
The following modified tanzanite grading and classification system is currently being used by the Company:
| Grade | Description |
| A | Exceptional Colour, Eye Clean |
| B | Rare Deep Colour, Eye Clean |
| B (SI) | B Colour - Slightly Included |
| B (I) | B Colour - Included |
| BL | Lighter Colour B grade, Eye Clean |
| BL (SI) | B Light - Slightly Included |
| BL (I) | B Light - Included |
| D | Opaque Material |
END
For more information, please visit www.tanzaniteone.com or contact:
Willi Boehm, Company Secretary
+61 8 9367 5211
Bernard Olivier, Chief Executive Director
+61 4089 481812
Nominated Adviser and Broker
Ambrian Partners Limited
Richard Greenfield
+44 (0) 20 7634 4700
Public Relations
Threadneedle Communications
Laurence Read/ Beth Harris
+44 (0)7979 955 923