19th Feb 2014 12:32
LONDON (Alliance News) - Richland Resources Ltd Wednesday said production and grades increased in the fourth quarter of 2013, but revenues fell as it awaited the return of high grade production from areas held back by illegal mining.
The gemstone company, with operations in Tanzania, said its tanzanite production increased to 1.1 million carats for the three months to the end of December, from 795,162 carats in the same period in 2012, while the the average grade per tonne increased to 166.05 carats, from 102 carats.
However, sales fell to USD2.7 million, from USD3.9 million a year earlier. It didn't give a reason for the decline.
As anticipated, the company's underground team was allowed to re-enter high-grade areas secured by the Tanzanian government from illegal miners during the second half of 2013. Richland said that production re-start and ramp up of the high grade area will commence during the first half of 2014.
The company also noted that the fourth quarter saw it achieve a number of key tasks that will allow it to move production and sales forward, including new agreements with the Tanzanian government over tanzanite mining and the development of possible new revenue lines.
Richland Resources shares were up 3.1% to 8.25 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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