Richland Resources eyes DSE listing, higher output

 London-listed Richland Resources, the parent company of TanzaniteOne, plans to offload a 20 percent stake during a cross-listing and initial public offering on the Dar es Salaam Stock Exchange.

The firm plans dual listing at Dar es Salaam Stock Exchange in this year’s second quarter.

The AIM-listed miner, which holds the licence to the largest of four mining blocks in the world's only tanzanite-producing area near Mount Kilimanjaro, returned to profitability in 2010 after two years of losses.

It expects China to become the next big market for the coloured gemstone after the United States, as the market rebounds from the global financial crisis.

Mr Mpungwe
"We are planning a cross-listing through an IPO, whereby the existing shareholders will dilute their shareholding," deputy chairman, Ami Mpungwe told Reuters on Thursday.

Gabriel Kitua, chief executive of Tanzania's bourse, forecast strong interest from investors on Richland's shares.

"There is a very huge demand for new IPOs in Tanzania. If investors will be satisfied by the profitability of the company, I expect the Richland IPO to be overly oversubscribed," he said.

Mr Kitua
Mpungwe said Richland's Tanzanian unit, TanzaniteOne Mining Ltd, planned to produce 2.5 million carats this year compared with the 2.38 million carats it aimed to produce last year.

While last year's results have yet to be released, Mpungwe was positive the company had met its production target.

He said the miner was aiming for a revenue of $24 million from this year's production of 2.5 million carats.

Richland posted sales of $4.7 million in the third quarter of 2011 from the production of 573,771 carats, a 24 percent jump.
Source: Reuter,af.reuters.com, reported by Fumbuka Ng'wanakilala in Dar es Salaam


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