7th Apr 2014 10:15
LONDON (Alliance News) - Sierra Rutile Ltd Monday said its first quarter production was up strongly and its cash costs were down during the period.
The titanium feedstock minerals company, with operations in Sierra Leone, said it increased rutile production 12% to 28,218 tonnes from 25,087 tonnes and increased its ilmenite production 23% to 6,868 tonnes from 5,567 tonnes compared to the first quarter 2012.
The company also said production of its zircon concentrate, a semi-finished zircon product, increased 36% to 877 tonnes from 643 tonnes.
Sierra Rutile said that its sales volumes in the first quarter were slightly higher than production during the quarter, resulting in a reduction in inventory, as it continues to see structural improvements in the sector as pigment plant capacity utilisation rates improve and reported titanium oxide pigment inventory levels approach historical averages for the season.
The company said it saw a 33% reduction in its operating cash costs to USD539 per tonne as compared to its first-half 2013 rate.
Sierra Rutile said through its on-going, company-wide cost reduction programme, it has seen a steady decline in operating cash costs and expects to see further cost reductions during 2014.
The news comes weeks after the company announced that its pretax profit fell significantly in its full-year 2013 as revenues fell and costs increased despite a jump in production during the year.
The company said at the time that its revenues fell due to weaker pricing obtaining, including a 49% fall in the average price of rutile in 2013 of USD1,044 per tonne from USD2,041 per tonne in 2012.
Sierra Rutile shares were up 15.1% to 61.00 pence, putting it in the top ten AIM risers Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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