Richland Resources Ltd (LON:RLD) enjoyed a strong finish to 2016, producing 840,000 carats of gemstones from its Capricorn sapphire mine in Queensland, Australia in the final three months of the year.
That figure is well ahead of the 800,000 carats Richland had been targeting for the quarter.
During the period, the group sold 857,000 carats of blue and fancy rough sapphires and corundum for US$535,000; an average price per carat of US$0.62.
“Operations at the Capricorn sapphire mine are going from strength to strength and our new sales strategy, only adopted in the final quarter of last year, is already realising tangible benefit,” said chief executive Bernard Olivier.
“Our clear focus for 2017 is to develop sales, aggressively manage costs and develop margins to achieve first profit from our coloured gemstone mining operations.”
Richland processed more than 51,000 tonnes of material during the three months to 31 December, at an average grade of 16 carats per tonne.
The company also reduced its operating costs to US$660,000 during the period, achieving a total cost per carat of US$0.79.
Since the end of the period, work has begun on the final stage of the ramp-up which should take quarterly production up to 1.2mln carats.
In December, Richland secured £1mln via a share placing to help fund the remainder of the ramp-up programme.
Shares opened 8% higher at 1.06p on Monday.