Richland Resources (LON:RLD) reduced its losses in 2013 despite a constant battle with illegal miners at its tanzanite mine in Tanzania.
Revenues in 2013 fell to US$11.6mln (US$16.4mln), generating a net loss US$4.6mln (US$13.6mln).
Losses narrowed due to increased production levels, it said, with 3.4mln carats (2012: 2.7mln) recovered even though tonnes processed fell by 7%.
Since the year end Richland has exercised its option over the Nardoo sapphire mine in Queensland and Bernard Olivier, chief executive, said this would enable the company “to build a new gemstone production hub in a politically stable and effectively policed region for mining."
"While 2013 saw the beginning of action by the Tanzania Government against illegal tanzanite miners, ultimately a comprehensive solution failed to be implemented," he added.
Cash and equivalents at end December totalled US$0.9mln.
RFC Ambrian noted the miner was currently commissioning its newly-acquired brownfields sapphire mine in Australia, which looked to be the way forward for the firm, as its Merelani tanzanite mine hangs in the balance "as any government move towards resolving the illegal miners’ issue has not yet been forthcoming".
"With Richland withholding any further injection of capital into its Tanzanian subsidiary, the mine will need to return a profit and further cost cutting activities (involving the retrenchment of a large portion of the workforce) are required; any such moves may have further implications for the illegal miner issue," it said in a note.
Richland shares were unchanged at 1.625p.