Tanzanite One is the sole miner of Tanzanite - the newest (blue/violet) gemstone discovery. The only known source is in Tanzania and Tiffany & Co have described this "gem" as the most significant find in 200 years. TNZ is already profitable and this could be set to have an excellent 2006.

It looks as though some of the more savvy investors have taken profits today (whilst some of the slower Investors chronicle readers are still getting in !!!).
More by luck than judgement I managed to sell for 265.25 but, at this rate, i might just buy them back later !!!!!

It's all good fun.

So it's you causing the wobbles ;) Have been watching Fireone - thanks.

Another cracking rise on this today and I don't really believe that the institutions that are probably watching this have got in yet; but I'm sure it's on their radar.

Oh no Greyhound !!!!!!!!!!!!!

I sold too soon (although never any harm in banking a good profit and I still have half the holding left which are now most definately not going anywhere for quite a while !!)

;o)

No harm in realised profit but I'm holding tight; I see TNZ substanially higher in 12/24 months.

I've been away for a couple of weeks and see there's been some profit taking on this one. Not surprising looking at the rapid rise, however I note that Small Company Share Watch had an interesting write up. They mention there could be a Nasdaq listing this year which could see the price considerably higher. This would be excellent news as I've long thought this would be needed at some point to increase investor awareness.

After the recent profit taking we're back on the rise with a current 9% gain today and looks as though we'll shortly be back to the high. With results only a few weeks away ( which should so considerable gains in profit) and maybe news on a Nasdaq listing before too long, I expect to see this heading rapidly over 300p before long.

Excellent results with net income more than doubling. I would expect to upgrades before long - looking cheap again to my mind.

I am a TNZ shareholder (bought in at an average of 88p in late July/early August 05) and in general have been very positive about this share for many reasons. However I noticed that the TNZ price fell around 10% following the relase of the final 2005 report, although I did notice it generally seemed to be small sellers rather than bigger (institional?) sellers, and overall volumes in recent days have been below recent averages. However Greyhound, you indicated that latest 05 results show net income more than doubling. I think that is overstating things as you must remember that the 2004 results were only for 7 months and not a full year and therefore not directly comparable. When looked at a per month basis the increase over the year is not so big, but never the less a creditable increase of 29.23% over the year. However for me a disapointing trend in the recent figures was that (after subtracting the first 6 months from the year total) profit before tax for the last 6 months of 2005 was down quite substantially compared to first 6 months of the year ($2.570m vs $7.202m). Profit before tax as a percentage of revenue fell from 40.14% to 21.06% in the second half of 2005. EPS in the second half of 2005 was less than half that of the second half of 2004, but this in part will be due to the higher taxes due in 2005 because of big sales in first half of 2005 compared to only one month trading in first half of 2004. The 2005 report explains this drop in earnings in second half of year was in part due to not finding as many quality gems in the second half of the year which resulted in one less sale to sightholders than originally planned. I assume that variable quality will be a fact of life in this business (and so not so relevant to those with a longer term Buffetesque view). Perhaps the planned increase in mining capacity planned may reduce this problem?. Also I think the share may have been sold by some on the news of the stepping down of the CEO and founder of the business Mike Nunn. Anyone know anything about this? I am pleased to see he will still be a consultant to the business. Has he been head-hunted by a bigger company? Certainly many things look favourable in the medium term. The in-house broker and one covering broker both predict substantially increased profits for the next two years. The vertically integrated nature of the business and marketing drive coupled with rising price for Tanzanite are all very positive as is the substantially increased dividend being paid and minimal debt of the company. Anyone else got any comments on the recent 2005 report and future projections? Despite some disappointments in the recent report there are still many positives and I'm holding my shares.

Pars, fair comments. I've been re-checking data on Bloomberg and they are quoting net income to $9.8m, or 13 cents a share, in year ended 31/12, from $4.4m or 8.3 cents a share in 2004.

I think the point you raise about the departure of Mike Nunn is indeed a factor. He has a lot of followers from his days at Acquarius Platinum (where he oversaw a 400/500% increase roughly).

That said, I do think the recent sell-off is overdone and a lot of it did look like smaller private investors. I'm hoping the $5m marketing spend will be worthwhile in order to promote more awareness, however I can't help thinking that they need to get a Nasdaq listing off the ground as I'd have thought this would have a significant positive impact.

In for at least a couple of years (is my current view).

Greyhound - Couple of slightly bigger sell offs today (80th and 25th) but still seems to be primarily smaller private investors. As stated above the $4.4m net profit in 2004 was for 7 months compared to 12 for 2005. Net profits in report $9.772m for 2005 (12 mths) and $4.411m for 2004 (7 mths). I'm like you and in for the longer haul unless there are fundamental changes to the business. If the predicted increases in EPS take place then hopefully we will se a significant rise in the share price over the next few years. Do you know any more about the possible Nasdaq listing? Are they looking to raise additional funds to pay for expansion of the mine's productivity?

Don't know anything more about possible Nasdaq listing though I'm tempted to make myself known to the Investor Relations team and do a little more delving. Not sure whether additional fund raising would be necessary at this stage and similarly I'm not sure of the implied cost of mining at twice the depth. More research required!

On the glossy side of things, I do know Tom Cruise and Katie Holmes are expecting their child this week, but don't know if it's all rumours that he'll be giving a Tanzanite ring. So much for the element of surprise!!

If Tom Cruise doesn't come up with a Tanzanite ring for Katie, TZO will drop further...down 6p to 201p now.

Belw average volumes today with about as many sales as buys so far; so could the continued decline today be market maker driven? The next 6 monthly results willl be a very important indicator and give a better idea of longer term value. We can always expect "Mr Market" to over-react in the short term to bad news.

Will be interesting to see either the current or next edition of Investors Chronicle as I believe they've been a strong advocate of TNZ since the early days.

Where is Tom Cruise? TNZ is down to 186p now!

172p now...what is causing the drop?

Been generally thin trade over last few days with losts of small trades. So could just be Mr Market and small investors in particular over-reacting in the short term to the combined worse than expected second half of the year results (forgetting very good first half of the year results and good future prospects for growth) and to the change in CEO and getting caught up in following the momentum down. Mike Nunn (departing CEO) is clearly an excellent businessman, and so his stepping down is unfortunate - but I see he will continue to act as a consultant to T1 and he still has a sizeable shareholding in the company which is good. Taking a Buffet style view, short term movements whether up or down are often irrational and unpredictable often based more on sentiment and emotion than on rationality. Ignoring the short term (never easy to watch the share price plummet though!) , in the long term the share price should reflect profitability and success of the company. Therefore if taking a longer term view, as long as fundamentals and future long term prospects remain sound, the price should recover in time. I believe that the quality and amount of gems recovered can reasonably be expected to vary over time (and this appears to have contibuted to poorer second half of the year profits with one less sightholder sale than planned),and this variability will be less of a longer term problem if mining capacity is increased (as is planned) and T1 continues to buy up additional stones from other miners. Could well be that the wee guys who panic and sell now will be the losers in the longer term, and if so then the current price may provide a buying opportunity. On the other hand, if anyone knows of any good reasons that the fundamental longer term prospects for the company should be revised downwards, that would be reason for concern. Will be very interested to see what sort of profits are generated for next 6 months.

As for Tom Cruise - that rumour should not have got out. If he was to be seen to give TNZ now, it might be perceived as tacky comercialism and viewed very cynically by the press. Would be better for this to happen with a celebrity with no prior publicity whatsoever.

Question is are all the sellers in recent days just lemmings all following each other over the cliff, or do they know somehing we don't?

Tanzanite One swings to H1 pretax loss on lower gem quality tanzanite recovered
AFX


LONDON (AFX) - Tanzanite One Ltd swung to a pretax loss for the six months to end June as lower gem quality tanzanite was recovered and mining operations were restricted by un-anticipated national power cuts.

It moved to a pretax loss of 684,593 usd from a profit of 9.0 mln usd in the year-earlier period. Sales fell 27 pct to 16.3 mln usd. It took a 2.8 mln usd provision following the decision to withdraw from the wholesale jewellery business.

It plans to pay an interim dividend of 2 cents, up from 1 cent in 2005.

Chief executive Ian Harebottle said that despite tanzanite gem quality remaining at historical lows, lower cut and polished sales, and the 2.8 mln usd write down, he was encouraged by the results achieved in the group's core mining business.

Cash and cash equivalents at end June were 6.6 mln usd, compared with 5.1 mln in 2005.

The company is increasing its presence in Tanzania.