Sierra Rutile Limited Operational Update (2852W)

TIDMSRX

RNS Number : 2852W

Sierra Rutile Limited

26 April 2016

Sierra Rutile Limited

Operational Update

Completion of Gangama project construction and recommencement of rutile sales to titanium metal customers

London, UK, 26 April 2016: Sierra Rutile Limited (AIM:SRX) ("Sierra Rutile" or the "Company") is pleased to provide the following corporate update:

Highlights:

-- Completion of construction phase of Gangama project and the commencement of plant commissioning; and

   --      The re-commencement of rutile sales into the titanium metal market. 

Completion of construction of the Gangama Dry Mine Project

On 25 April 2016 the Gangama project reached a significant milestone with the completion of plant construction activities and will shortly enter the final phases of commissioning. The Gangama project continues to progress towards the planned start of commercial production during Q2 2016, and remains both on time and on budget.

Re-commencement of rutile sales into the titanium metals market

Sierra Rutile has restarted sales into the titanium metals market. After several years of subdued demand as stockpiles were depleted, the Company views this initial order as an encouraging sign that the demand for high-grade titanium feedstocks is continuing to strengthen.

Titanium metal is a key growth market for high-grade titanium feedstocks. Titanium metal production, for use in aviation, automotive, medical and technological applications, requires a high-grade premium rutile product, and Sierra Rutile has historically been a key supplier to this end market. Titanium metal is valued for its light weight, chemical inertness and durability, providing unmatched performance and durability.

John Sisay, CEO of the Company, said: "The completion of the construction phase of Gangama represents a significant de-risking step as the project nears commercial production. Whilst the re-commencement of sales into the titanium metal market marks the re-emergence of a key end market for Sierra Rutile's premium product. We are very pleased to announce these two significant milestones, as they further demonstrate Sierra Rutile's continued track record of delivering on its stated goals. "

ENDS

For further information

 
 Sierra Rutile Limited 
  John Sisay, Chief Executive 
  Officer 
  Matthew Hird, Chief Financial      +44 (0)20 
  Officer                            7074 1800 
 Investec Bank 
  Nominated Adviser and 
  Joint Corporate Broker 
  Chris Sim / George Price           +44 (0)20 
  / Jeremy Ellis                     7597 4000 
 Numis Securities Limited 
  Joint Corporate Broker 
  John Prior / James Black           +44 (0)20 
  / Paul Gillam                      7260 1000 
 RBC Capital Markets 
  Joint Corporate Broker             +44 (0)20 
  Jonny Hardy / Elliot Thomas        7653 4000 
 Kreab 
  Marc Cohen / Christina             +44 (0)20 
  Clark                              7074 1800 
 

About Sierra Rutile Limited

Sierra Rutile is a leading, multi-mine mineral sands company, operating world-class assets and developing a portfolio of growth projects in the south west of Sierra Leone, with its primary commodity mined being natural rutile, a titanium feedstock. The Company has an established operating history spanning approximately 50 years and a resource mine life of another 50 years with one of largest natural rutile deposits in the world and a JORC-Compliant Mineral Resource for measured, indicated and inferred resources for the Sierra Rutile mine of over 866 million tonnes (as at 30 September 2015). Sierra Rutile expects to be the world's largest primary producer of natural rutile in 2016.

www.sierra-rutile.com

This information is provided by RNS

The company news service from the London Stock Exchange

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April 26, 2016 02:00 ET (06:00 GMT)