Richland Resources Ltd (AIM:RLD) is passionate about premium coloured gemstones. Committed to creating value, Richland Resources specialises in the mine to market supply channel for precious gemstones. Starting from gem exploration, mining, processing, precision cutting and luxury marketing, Richland is involved every step of the way. Richland, through its wholly-owned subsidiary, TanzaniteOne Mining Ltd, is the largest and most scientifically advanced miner and supplier of tanzanite in the world.
Richland’s primary product is tanzanite, a rare violet-blue gemstone, which is found in the foothills of Kilimanjaro, northern Tanzania.
Chief executive Bernard Olivier said the company is concentrating on developing new markets to take its stones, especially China.
"2011 has seen a dedicated effort to educate the Chinese market on the attributes of tanzanite, especially within the smaller sizes and lighter colour range.
"Our second year of profit is testimony to our continued margin enhancement programme and significantly enhanced production rates.”
The company overcame a ban that prohibits exporting of rough tanzanite, weighing one gram and above, to post a 29 per cent increase in revenue to US$20.5 million in the year ended 31 December 2011.
Production levels increased 9 per cent to 2.4 million from 2.2 million carats and Richland has set a production target of 2.5 million carats for 2012. It expects revenues to be in-line or greater than those achieved in 2011.
Net profit in the year ended 31 December 2011 increased 33 per cent to US$0.8 million from US$0.6 million.
Richland said the renewal of Richland’s wholly-owned subsidiary TanzaniteOne’s Special Mining License is an important focal point during 2012. The renewal documents were submitted in January 2011.
The company is also working to establish a new mine which will produce tsavorite, a rare green gemstone. And it has an option to acquire an Australian sapphire project for an upfront fee of A$ 120,000.
The share price was up 3.1 per cent to 8.3 pence.