Sierra Rutile Share Discussion Threads

[corbine] 29/9/2014 10:45

its more the ebola factor than anything else?

[bossman1978] 29/9/2014 10:38

How much does Pala hold here?

[m w] 25/9/2014 16:33

Bought 16663 at 27.6

[bossman1978] 24/9/2014 15:38

So no dividend here then?

[nonic] 17/9/2014 07:17

Wow-thats some reduction in the share price

I remember taking someone on here to task for being a bit too pessimistic on assuming an share price of $1500 /tonne a couple of years ago and here we are selling the stuff at less than 60% of that level.

Remember the good old days, the RNS saying all the first quarters output had been sold at $2500!!!!!!!

2 years ago.

World prices wont stay at this level for long as producers will mothball operations.

From todays RNS:-

Sales of rutile, ilmenite, zircon and other concentrates were at US$64.1 million in H1 2014, 3% lower than H1 2013 at US$66.4 million. The major contributor to the decrease in revenue in H1 2014 over H1 2013 was the weaker pricing obtained with an average realised price for rutile in H1 2014 of US$855/tonne (H1 2013: US$1,265/tonne), partially offset by a 34% increase in sales volumes to 71,565 tonnes (H1 2013: 53,446).

[bossman1978] 04/9/2014 04:17

Very quite on this board. I am hoping the next trading statement will be good for us with stock piles dropping.

[bossman1978] 15/8/2014 12:06

Blue at last!

[bossman1978] 08/8/2014 14:23

It would be nice to have a statement to ensure shareholders that all is ok and it's the Ebola outbreak that is panicking the market. But most shares seem to be down

[corbine] 04/8/2014 16:19

other lse listed co's have responded about Ebola past few weeks, as sierra rutile is the biggest or nearly biggest employer in sleone-might help now the panic has happened to make a statement that everything is ok around the tenements and if ebola arrives they have plans in place to deal with it? they do have medical centres etc themselves that they own. presumably a co of srx size will have been in contact with w.h.o. and have contingency plans in place?

[bossman1978] 04/8/2014 15:11

Ok was just concerned with the constant drip of selling over the last while.

[brechin] 04/8/2014 14:23

Don't be bloody stupid. The market is panicking over the ibola outbreak and taking out weak PI's.

Another wonderful buying opportunity ,IMHP.

[bossman1978] 04/8/2014 10:08

Is pala selling?

[bossman1978] 31/7/2014 16:47

When's the next trading update?

[bossman1978] 28/7/2014 14:06

It would be nice to see the share price recovering

[nonic] 08/7/2014 08:23

Sierra Rutile Limited Q2 Trading Statement
Print
Alert
TIDMSRX

RNS Number : 6662L

Sierra Rutile Limited

08 July 2014

Sierra Rutile Limited

Sierra Rutile Provides Q2 2014 Operational Update

London, UK, 8 July 2014: Sierra Rutile Limited (AIM: SRX) ("Sierra Rutile") is pleased to provide an operational update on the second quarter of 2014 ("Q2").

Highlights

-- Production for the quarter:
- 27,842 tonnes of rutile in Q2, a 3% increase on Q2 2013 production; and

- 8,410 tonnes of ilmenite in Q2, a 12% decrease on Q2 2013 production.

-- Continued improvement in operating cost efficiency during H1 2014, resulted in a 24% reduction in operating cash cost per tonne(1) relative to H1 2013.

-- Sales in Q2 were ahead of production volumes resulting in a reduction in inventory levels.
-- Received confirmation of formal credit approval from Nedbank Limited for the extension of the existing US$20 million working capital facility.

Production

Sierra Rutile produced 27,842 tonnes of rutile, 8,410 tonnes of ilmenite and 488 tonnes of zircon concentrate in Q2.

During the quarter rutile production sourced from tailings was lower than planned due to higher than expected non-valuable heavy minerals in the tailings concentrate. This resulted in a modest underperformance against planned rutile volumes in H1 2014. Production for H2 2014 is expected to be higher than H1 2014, as mining operations transition to higher grade zones, concentrate blend ratios are optimised and recoveries improve following the completion of the planned upgrade of the mineral separation plant, and the company expects to meet full-year forecasts.


Q2 2014 Q2 2013 % change
----------------------- -------- -------- ---------
Rutile 27,842 26,898 3%
Ilmenite 8,410 9,395 (12%)
Zircon Concentrate(2) 488 670 (37%)
----------------------- -------- -------- ---------

Cost efficiency

Sierra Rutile continues to achieve significant results with regard to operating cost efficiency, with total operating cash cost per tonne declining to US$609/ tonne during H1 2014, relative to US$799/ tonne H1 2013(3) . This was despite lower than expected production.

Through the on-going, company-wide cost reduction programme and increased production in H2 2014, Sierra Rutile expects to see continued reduction in unit costs through the remainder of the year.


H1 2013 H1 2014
------------------------ -------- --------
Total Operating Cash
Cost (US$/t) 799 609
% Change from Previous
Period n/a (24%)
------------------------ -------- --------

Expansion projects

The upgrade to the mineral separation plant continues on track for completion during H2 2014. The upgrade will increase the capacity of the mineral separation plant to over 200ktpa while also increasing the process recoveries, improving the power and fuel economies and it will also increase Sierra Rutile's ability to process higher volumes of high-grade tailings located adjacent to the existing mineral separation plant.

The Board continues to monitor market conditions in contemplating the appropriate time to develop the Gangama Dry Mining project.

Financing

As at 30 June 2014, Sierra Rutile had a cash balance of US$10.8 million.

During the quarter, Sierra Rutile received confirmation of formal credit approval from Nedbank Limited for the extension of the US$20 million working capital facility. The facility, as approved, would have a tenor of two years, carry an interest rate of LIBOR plus 5.00% and will be secured against the assets of Sierra Rutile. Sierra Rutile and Nedbank Limited continue to progress the documentation for this facility which is expected to close during Q3.

Sales

Sales in Q2 were ahead of production volumes resulting in a reduction in inventory levels.

Sierra Rutile continues to see structural improvements in the sector as pigment plant capacity utilisation rates improve, TiO(2) pigment inventory levels trend toward historical norms and pigment prices stablise. Furthermore, reports suggest that end-consumers hold little, if any, surplus stock and, as a result, any increase in pigment consumption is expected to flow through to increased TiO(2) production and feedstock demand.

+++++++++++++++++++++++++++++++++++++++++++

The 24% reduction in operating costs/tonne looks very good..........

except the comparative figure they give for H1 2013 is $799 whilst the cost/tonne for the whole of 2013 in the recent May Roadshow is $683/tonne.

If they are comparable measures it is possible for the H2 2013 to have been much lower to arrive at an average for the 2 halves of $683 but then that would not have given them to announvce such a cost improvement.


2014 volumes included in the Roadshow was forecast as c130,000 so it is a significant volume shortfall on the yearly rate.

Lets hope they can catch up

I can see why the market doesn't seem overly impressed

[donk4] 01/7/2014 18:08

Chairman not ceo.

[russman] 30/6/2014 18:19

Mr Barton CEO of Pala.

[russman] 22/6/2014 14:13

There was a pattern emerging at 49p. 220k trade would not appear to be a punt in the dark.

[bossman1978] 21/6/2014 17:30

Would nice to around the £1 Mark again

[burbelly] 12/6/2014 12:36

looks like it

[arphillips] 11/6/2014 12:21

Some interesting trades so far today. Perhaps some directors buying? Anyway, hopefully, this will be a turning point.

[russman] 03/6/2014 23:12

European workers leaving would have little effect in the medium term. If Ebola takes hold, productivity would plummet. I hope that Ebola is contained for everyone's sake.