TanzaniteOne to float shares at Dar bourse

TanzaniteOne mining company, the largest tanzanite mine in the world,  is set to offer 20 per cent of its shares to the public through an Initial Public Offer (IPO).

Richland Resources Limited, which owns TanzaniteOne, is set to float the shares at the Dar es Salaam Stock Exchange (DSE) come April, officials said yesterday.

However, the value of shares and the corresponding price on the ground would be revealed soon.
The company’s approach is different from that of a mining giant, African Barrick Gold (ABG), which only cross-listed its shares at the same bourse. The two would be the only mining companies to list shares locally.

The Richland Resources Ltd finance director, Mr Farai Manyemba, said yesterday that although the company is listed at the London Stock Exchange, its management had decided to file an application for listing shares at DSE through an IPO.

Mr Manyemba was optimistic that local investors would positively receive their IPO and own a stake in the firm.  

TanzaniteOne workers
“With cross-listing you wait for the share owners to sell, but with an IPO, local investors have a big opportunity for both buying and selling of the shares,” he said.

The firm in 2010  posted sales worth 15.8 million US dollars (about 24bn/-) compared to 12.5 million (about 19bn/-) in 2009.

The company attributed its good sales results to production increase, which was 2.2 million carats for 2010 against 1.9 million carats the preceding year.

TanzaniteOne Chief Executive Officer, Mr Bernard Olivier, said in a statement that the company accomplished its production target for 2010 of 2.2 million carats.

“We achieved an average grade of 59 carats per tonne, culminating in total sales of 15.8 million dollars for the year”, Mr Oliver said in the statement earl y last year.

Late 2010, as part of its phase one development plan, TanzaniteOne commissioned a new cutting and polishing facility located at its Mererani mine in Simanjiro, Manyara.

The facility polished 216 carats in December alone. “We look to expand our sales using our own cutting facility,” Mr Oliver said.

The company remains positive that it will be able to maintain its revenue stream through the continued expansion of sales from its own cutting and polishing facility.
Source: The Citizen,thecitizen.co.tz, reported by Ludger Kasumuni; addition report by tzxechange.blogspot.com

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