Sierra Rutile Share Discussion Threads

[eddie catflap] 02/6/2013 20:41

You are welcome brechin.

It does feel like it is just a matter of time before SRX is re-rated. It's long been predicted by the industry that it would be 2H 2013 before any demand pick-up and maybe the first signs are upon us.

Best of luck.

[brechin] 31/5/2013 14:48

Thanks, Eddie,

Your info is appreciated by those of us who know that SRX is an under-valued first class company. Mr Market is behind the curve.

[eddie catflap] 31/5/2013 09:13

SRX in the community...

http://news.sl/drwebsite/publish/article_200522858.shtml

[eddie catflap] 31/5/2013 09:08

Green shoots?...

http://www.benzinga.com/news/13/05/3635259/dupont-titanium-technologies-announces-price-increase-for-ti-pure-titanium-dioxid

http://www.benzinga.com/news/13/05/3634803/tronox-announces-titanium-dioxide-price-increases

[eddie catflap] 22/5/2013 20:55

From Iluka...



"In relation to zircon, as the company indicated in its March Quarterly Production Report, Iluka has
seen a higher level of customer inquiry and a pick-up in orders in all markets, except Europe.

Through April and into May, I am pleased to say that this
encouraging trend has continued and
augurs well for a draw down in finished goods inventory as the year progresses.

In key markets such as China and the US, and even now in Europe, albeit from a very low base,sales exceed last year's levels. In fact in China, to
date, sales are at a similar level to full year 2012 China sales.

Indications are that prices have stabilised, which if sustained, provides essential confidence to underpin volume recovery andrepresents a pre-condition for potential price increases.

I would emphasise that forecasting demand throughout 2013 and into 2014 remains challenging, due to factors such as the volatility of global and regional economic indicators and subsequent performance trajectories. Iluka will provide sales volumes, as it normally does, associated with its
June Quarterly Production Report, to be issued in July.

As expected, demand for Iluka's high grade feedstocks has remained subdued for reasons already indicated. Commentary within the major market of Iluka's products
–
the chloride pigment sector
–
has of late reiterated themes which include a common
expectation of a return to more usual pigment plant throughput levels in the second half of 2013, given a reduction of pigment inventory
to historical levels and associated with a continued recovery in North American coatings markets,
including seasonal construction and painting activities.

So demand, and hence sales volumes for rutile and synthetic rutile, will be
dependent on the strength and timing of these
downstream market developments. The next few months will be
informative in this regard and therefore
, as would be expected from my comments, the level of high
grade titanium dioxide sales I expect to be significantly weighted to the second half

[nurdin] 15/5/2013 08:42

Annoying drift down..need some positive news to halt the slide.Volumes are pathetic mind

[weildy2] 14/5/2013 00:13

Well spotted EC. Seems to have been scheduled.

[eddie catflap] 13/5/2013 20:27

Sierra Rutile shutdown completed



General maintenance? (I hope)

[eddie catflap] 10/5/2013 08:27

Worth a read...

[eddie catflap] 10/5/2013 08:14

And...

Sequentially, although overall market prices for titanium slag and synthetic rutile decline, our average titanium slag selling price increased as approximately 40,000 metric tons of legacy third-party sales contracts that were priced below market expired in the fourth quarter of 2012. Pricing levels for natural rutile declined modestly compared to the levels in the fourth quarter.

We saw the second consecutive quarter of substantial sequential sales increases in zircon. Revenue in the first quarter increased 6% sequentially, driven by a 47% volume growth, which was offset by 28% lower selling price. Recall in the fourth quarter of last year that zircon volumes increased 93% compared to the preceding quarter.

[eddie catflap] 10/5/2013 08:11

From Tronox...

...As we have said before, when we report pigment segment results, we book all of the feedstock that is being bought from our own Mineral Sands unit at approximately the then current market or spot price...

then...

...Our average feedstock cost for the pigment segment in the quarter was $1,501 per metric ton, which is a reduction from $1,623 per metric ton in the fourth quarter...

[nurdin] 09/5/2013 12:50

Sliding again but no worries....ready to add more

[weildy2] 07/5/2013 13:01

I'm inclined to agree with you Brechin. This is a slumbering volcano

[weildy2] 30/4/2013 14:43

Hazy 1.
What has this link to do with SRX ?

[brechin] 28/4/2013 14:21

Russman,

Good point but the profit margin means that they have flexibility to undercut the competition and still make excellent free cash flow.

[russman] 25/4/2013 22:46

At Yr End, SRX holds 26,807 tonnes of Rutile with a b/sheet value of $25.2m. Approx 81,750t sold at $2,180 per tonne on a 45% net margin. Fcast 125k production but how much will they sell and at what price?

[eddie catflap] 25/4/2013 12:48

corbine,

your question re South American suppliers...



(new deposits announced on tues!)

[corbine] 25/4/2013 10:20

watch out for the agribus model to come good- potential green gold---srx has 55,000 hectares of land (165,000 acres) under concessions- 20% of which has been drilled and is part of the jorcd asset- worlds largest natural rutile resource- sierra leone itself as per my previous posts relative to 2009 has an untapped agriculture market of $700 million dollah -$1 billion dollah per annum. (estimated) srx is reviewing the potential of this green gold potential with the appointment of "the Keiser" and current studies being undertaken.
note sierra Leone itself has 570,000 hectares of arable land according to Nationmaster (121st ranking out of 199) - so with srx to add additional acreage for the potential of mining rutile- could they also obtain concessions dually to enable them to also use the land for arable/agricultural purposes? as well as the possibilities of making good and returning land to good use- post dredging?
just a thought -corbs- apols for the dated links as i search for sierra leone agricultural uses/ acreages etc as not much info floating on this subject? anyone with better links feel free to throw them in..

:-))
Corbs musing-gl dyoR etc etc

[johnwise] 25/4/2013 07:56

Yes, excellent progress:

Sierra Rutile Limited Final Results & Annual Report

RNS Number : 1763D

25 April 2013

Financial results for the year ended 31 December 2012
Sierra Rutile (SRX)
Financial Highlights:
-- US$107.8 million EBITDA(1) (2011: US$0.1 million).
-- 226% increase in revenue to US$179.1 million (2011: US$55.0 million).
-- 9% reduction in rutile cash production costs(2) at US$637/tonne (2011: US$701/tonne).
-- Profit for the year of US$83.5 million compared to a loss of US$28.0 million in 2011.

[brechin] 25/4/2013 07:45

The results are slightly lower than I had projected but excellent all the same.

On a PE of only 4 with the prospect of dividends mid year.

[eddie catflap] 24/4/2013 11:21

Green shoots?

On Bloomberg about 9pm last night, Du Pont's results were touched upon. They mentioned an improvement in Ti02 markets due to USA housing. Anchor made throw away remark about needed to "own pigment."

However, on reading results, it seems more like a steadying of demand in Q1 with all indicators pointing to a bottom mid-year 2013.

Here is a link to the conference call transcript. The Q&A session touches upon Ti02 a few times.



One interesting point was that when questioned about the effect of possible raw material pricing, the answer implied that it was only a small proportion of total costs so relatively immaterial. This confirms info contained within SRX's presentations.

..."The ore isn't going to be the major driver in the COGS. If you look at the total Company, you are probably looking about the 3% to 4% range on
raws...."


Also Du Pont's investor page...

[brechin] 24/4/2013 10:24

Weildy2

Just to add to your conversation with yourself, the results were published on May 10th last year but I have seen no date for this year.

[weildy2] 23/4/2013 20:32

Obviously not.