Gemstone miner Richland Resources (LON:RLD) today revealed a 67 per cent increase in fourth quarter sales.
In the three month period, ended December 31 2011, Richland made sales worth US$5.9 million, versus US$3.4 million in the fourth quarter of the prior year.
The group produced 554,060 carats, at an average grade of 58 carats per tonne, in the quarter.
This rounded off a successful year in which Richland made sales worth US$20.8 million (2010: US$15.8), produced 2.38 million carats (2010: 2.38 million) at an average grade of 58 carats per tonne.
This year Richland is targeting production of 2.5 million carats and it believes that revenues will be in line with or surpass what it achieved in 2011.
"The continued positive sales figures of US$5.7 million for the fourth quarter represents a 67% increase in sales relative to the same period last year of US$3.4 million, despite tanzanite prices remaining under pressure,” said chief executive Bernard Oliver.
“During 2012 we look forward to announcing further updates on production rates and sales revenues as well as clarity on grades and value per carat at our tsavorite project."
Richland's primary product is Tanzanite, a rare violet blue gemstone found in the foothills of Kilimanjaro, northern Tanzania.
It 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 initial numbers (reported today) are highly encouraging," said broker Ambrian Capital.
"We note sales may be a reflection of higher tanzanite prices or the higher quality of gems sold. Richland is benefiting from capturing further margins with the integration of the cutting and polishing of gems.
"Having just returned from site, the performance reflects the commitment and operational excellence of what is a highly experienced and competent management team."