17th Sep 2014 07:41
(An item published at 0837 BST misstated the company share price. The correct version follows.)
LONDON (Alliance News) - Minerals producer Sierra Rutile Ltd said Wednesday it swung to a loss in the first-half of 2014, on the back of higher finance costs and a fall in revenue.
The company said lower revenue and higher cost of sales decreased its gross profit in the six months to June 30, while a significant increase in finance costs left the company with a first-half pretax loss of USD3.8 million, compared with a pretax profit of USD3.8 million in the first-half of 2013.
Cost of sales rose due to higher production and shipping costs.
The company said that while rutile production and sales volumes both increased, revenue declined to USD64.1 million, down from USD66.4 million a year earlier, hit by lower market prices of rutile.
Rutile production in the first-half rose 8% to 56,060 tonnes, while rutile sales volumes were up 34% to 71,565 tonnes.
The company said it also continued to strip out costs in the business, noting a significant reduction in its operating cash costs.
"Despite the lower weighting of first half production, the continued focus on unit cash costs has resulted in a strong cost performance from the operations," said Chief Executive John Sisay in a statement.
Looking forward, the company said its confident in its outlook for the remainder of the year.
"The company has seen good demand for its products and sales volumes for the period were at record levels, albeit at subdued prices, providing us with confidence for the rest of the year," Sisay added.
Sierra Rutile shares were untraded Wednesday morning, quoted at 33.00 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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