4th Oct 2013 09:31
LONDON (Alliance News) - Sierra Rutile Limited said Friday that it had continued to see strong rutile production in the third quarter, up 20% from the second quarter, although sales fell behind its production rates, resulting in a small inventory accumulation.
In an operational update, Sierra said that rutile production was 32,305 tonnes, a 22% increase from 26,381 tonnes in the third quarter of 2012, and Ilmenite production was 8,156 tonnes, up 53% from 5,315 tonnes a year before. Rutile is a mineral used in pigments and the production of titanium, among other uses.
Sierra said that sales in the third quarter fell behind its production rates, meaning it had a small inventory accumulation, but said that Asian pigment prices are showing signs of improvement.
It cautioned that smaller rutile consuming markets had been more subdued, and consumption in welding applications remained sluggish. It expects de-stocking in the titanium metal sector to continue into the first quarter of next year.
The company said that during the quarter it had completed a value-optimisation and re-costing exercise for its Gangama Dry Mining project in Sierra Leone, which it said had resulted in a more than 17% decrease in capital cost. The company said that market conditions remained a significant driver in its decision to develop the Gangama Dry Mining project, and said that it wanted to make sure the current market recovery was fully embedded before beginning the project.
Sierra also reviewed the mining method and mine plan for its Gbeni deposit, and concluded it should be mined using dry-mining techniques, which would result in near-term capital costs savings of USD23 million.
Shares in the mineral exploration-and-mining company were trading up 0.46 pence at 57.71 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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