31st Mar 2016 09:36
LONDON (Alliance News) - Sierra Rutile Ltd on Thursday posted a widened pretax loss and lower revenue for 2015, though production hit its highest annual total since operations for the group started.
Sierra said its pretax loss for the year to the end of December was USD9.4 million, compared to a USD8.9 million loss in 2014, while revenue fell to USD105.8 million from USD117.8 million a year earlier.
Total rutile production hit 126,021 tonnes for the year, 10% higher year-on-year, but revenue fell due to lower rutile sales volumes and marginally lower prices.
The company expects rutile production to decline in the first quarter against the fourth quarter of 2015, down around 33%, though it is expected to be around 11% higher year-on-year. Sierra Rutile's production guidance for the year is between 120,000 tonnes and 135,000 tonnes.
John Sisay, Sierra Rutile's chief executive, said production came in at the top end of guidance and the group managed to keep a tight control on costs. The mineral sands market remains subdued, he said, but he remains confident on the outlook for 2016.
Sierra shares were down 4.6% to 18.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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