Just seen this article from last weeks IC, which seems to show this as good short to medium term prospects. It reads well & has progressed steadily since launch last August.

To be fair the IC article has added an uplift in teh last week, but does anyone have further information?

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75p - Aim - Tanzanite One doesn't quite have a monopoly on global tanzanite production, but it's not far off it. The company owns the biggest licence, and is the single biggest producer of the blue-violet gemstone on the only known deposit of tanzanite in the world: beneath the shadow of mount Kilimanjiro, in Tanzania. Its only competitors are local artisanal miners, often with blocks as small as 50 sq metres and, as the stones near to the surface get mined out and digging gets deeper, these small-scale operators are finding it harder to mine effectively. Throw in some sizeable exploration acreage, and Tanzanite One is in a commanding position.

And it needs to be, because the geology on the ground is not easy. Rough tanzanite stones are found in folds in the ore zone, inside small, sausage-shaped formations, termed 'boudins'. Because the boudins are so small, exploratory drilling isn't that effective, but Tanzanite One gets round this by sinking wide exploratory shafts that can later be used for production. The company estimates that it has enough proven resource to last four years, but directors are confident that production can be sustained for 20 years. If so, Tanzanite One should be able to take advantage of a growing - and increasingly sophisticated - market.

The US retail market for tanzanite and tanzanite jewellery is worth around $500m, but that data was collected in 2003 - and signs are that it has increased significantly since then. According to website coloredstone.com, tanzanite is consistently rated among the top four most popular gemstones in the US. As yet, the stone is little known in Europe, but that should change as the company invests in marketing.

With a track record of profits, and talk of a notional dividend this year and a substantial one next year - possibly as much as 8 per cent - it's easy to see why UK funds have flooded in. JP Morgan holds a significant stake and other institutions are known to be taking an interest. Expect to see some carefully managed institutional buying soon. Private investors should follow suit. Short to medium-term buy.

Nothing to add save that this gemstone sells out every time on QVC and Ideal World. Whilst I lack the expertise of many posters it is clear to me that a demand for this is being created. On the back of this I have invested in TNZ and IDS and both (so far) are doing reasonably well.

luckyinlove

Very interesting single product stock with experienced management and a replica of De Beers in its marketing strategy (didn't do them too badly, did it?). I trust the subtext is that they will be contolling the release of gemstocks into the market place in order to control the price in an upward only direction (cf Opec!) I hope by the time they have educated the market they are holding a large stash of quality product to sell into the mature price structure.

Interesting a) whether the site has a 4 year life as independently advised or 20 years as directors say and b) whether proximate prospects will reveal any further economical deposits, or even some other gemstones.

Very interesting chart as well. Should now just peter down to somewhere south of 85p as it hits the bottom boundary of the strongly upward channel since birth. That's the time to buy in IMHO. Thence it should repeat the reassertion of the SP up towards 115 as it hits the upper boundary for a 35% profit over the course of a couple of months. Could be a great little trading stock.

NB. I see the stock is closely held as to 78% by AFGEM intetests and others from placing. This means the free issue will react more volatilely to news and that there is one hell of an overhang to be sold into the SP over the next few years.

Their website is quite informative, as is the RNS on their marketing strategy which I like. Looking out for first finals for the 8 months to 31st December any day now - anyone know which day exactly? That could also be a sell on results situation which brings the SP in reach of a first purchase.

One to watch - although I'm already well into gold and mineral mining. I have a gold mine looking boring, so if I sold that, I might well be interested in diversifying into another mineral.

SD

>> SD I promise you I am not following you around!! It looks like we have similar stock interests. I have been eyeballing TNZ since a write up in Moneyweek about 2 weeks ago. Looks very interesting. Agree that now is not the time to go in when profit takers may not yet have fully bailed out - but soon perhaps.



rgrds
gk

Good to meet again gallick - great minds etc.

I've not seen such a clearly articulated chart as this one on what I refer to as "virgin" stocks where they are yet to start producing. It should help identify good timing to buy over the next few weeks, as long as you're a fundamental believer.

For me it would be an opportunistic investment, since I am uncertain long-term what the value of the gems will be, whether the company will earn much revenue from the after marke, how long the site will prove economical and whether there is any similar freak geology adjacent in their new prospects.

Spread betting would work a treat on this stock, but I have note yet got into that (I already spend far too much time on my portfolio!) and temperamentally would l not enjoy the constant watch one needs to keep to really time the trades right.

Let's keep watching for the entry point.

SD

>>SD

Bear in mind that this stock is probably far too small for the spreadbetters to make a market in (ie not enough trade). Howevever to remain in the game, sussing out spreadbetting is essential to your long term survival and that is just what I'm planning on. Consider this - we are in a bull market (I think), so we are making money. What happens when the market turns??

Spreadbetting offers - Up and down bets, no stamp duty and no CGT. I have read about traders (or part time sharebuyers) who only deal through s-betting for those reasons.

rgrds
gk

I know you're right gallick - I could really fancy a few hours work a day at the screen whilst I played my music and spent more time on my family.

With capital of 50k making a 1% turn each working day - say 200 days a year - that's 100,000 tax free. Surely enough to get by on. Then there's what I do at the moment to build up a capital sum to pay of the mortgage early and retire.

SD