Volume growth and price rises helped Tanzanite One achieve £4.99 million pre-tax profits in the six months to June.

AIM-quoted Tanzanite One, which mines virtually the world's only source of lustrous violet blue tanzanite rocks at Merelani near Tanzania's Mount Kilimanjaro and operates a wholesaling operation for rough and polished stones, chalked up first-half revenues of £12.4 million and ended with mid-year cash of £2.85 million. This compares with the company's maiden pre-tax profits of £2.25 million on £8 million revenues from its first seven months of operation in its present form between May and December last year.

According to chief executive officer Mike Nunn, the average rough price achieved for the 576,933 carats of tanzanite produced in the first half year averaged $13 a carat, up from $9 in the six months to December, an improvement which he attributes to improved colour, clarity and size of the stones. With a grade of 47 carats per tonne of ore, keeping cash costs to $2 a carat helped margins, though an underground rock fall caused the first death in the mine's five-year life.

Nunn says he is confident about current prospects, as Tanzanite One continues to stimulate demand in existing and new markets and promotes its own branded jewellery range, called 'Tanzanite Blue'. He suggests July's discovery of the largest tanzanite ever found, the 17,250 carat Mawenzi stone, at the company's mine has helped stimulate interest.

Broker Williams De Broe floated Tanzanite One last year at 42p. Today the shares are 97.5p, up 0.5p this morning, and should still have some speculative spice left.

Tanzanite One	AIM	£17.28m	23.50p	0.00p
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