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Sierra Rutile production surges as new mine ramps up

Published: 09:06 21 Oct 2016 BST

picture of mineral sands dredging operation
Record quarter for bid target Sierra Rutile

Minerals sands group Sierra Rutile PLC (LON:SRX) saw its best  production in a quarter since 2006 as the Gangama dry mine came fully on stream.

In total, 43,081 tonnes of rutile were produced in the three months to September, a 24% increase on the previous quarter and 27% better than a year ago.

Gangama contributed 20,198 tonnes of rutile, 17% ahead of its target as a result of higher plant throughput and utilisation rates.

Steady state production is expected by the end of the year.

Rutile production was supported by strong increases in tonnes of ore fed and heavy mineral concentrate production across the operation.

Sierra Rutile maintained rutile production guidance for this year at between 135,000 and 145,000 tonnes.

Ilmenite production fell by 30% to 7,143 tonnes but was 42% higher than the previous quarter and prices have picked up strongly in recent months. Production of the paint pigment was in line with demand.

During the quarter, it also successfully commissioned an upgrade to its mineral separation plant.

Earlier this year, Sierra received a 36p per share offer from Australian peer IIuka.

This had been agreed by the board and a majority of Sierra’s shareholders, but German regulatory authorities have launched an investigation that has delayed the deal by three months.

 

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